August 2009 - Tulsa, OK
BlueStone Natural Resources, LLC (“BlueStone”) recently added three banks to its existing credit facility. Comerica Bank, Compass Bank and Wells Fargo recently entered the $150 Million facility that is led by Bank of America.
BlueStone was formed in 2006, utilizing funds from the management team and Natural Gas Partners. Since formation, BlueStone has consummated 60 transactions creating a property set largely focused in South Texas. BlueStone currently operates 165 wells, predominately in the prolific Lobo Trend of Webb and Zapata counties, and has an acreage position consisting of more than 100,000 acres situated in South Texas and East Texas.
More than 50,000 acres are located in the emerging Eagle Ford shale play in southern La Salle and McMullen counties. BlueStone participated in its first Eagle Ford well earlier this year, which has been drilled and is awaiting completion. A second Eagle Ford well is currently drilling.
An additional 30,000 acres are located in East Texas, on the border of Walker and Madison counties. Historically, this acreage has been productive from the Glen Rose and James Lime formations, utilizing extremely long reach horizontal drilling.
BlueStone plans to use the increased credit facility to finance growth through additional acquisitions and drilling in its core South Texas and East Texas holdings. John Redmond, President of BlueStone adds, “The addition of Comerica, Compass and Wells Fargo builds additional strength in our banking group. This capacity will allow BlueStone to remain aggressive in the acquisition market over the next year. Historically, we have grown through acquisition and we plan to continue our efforts to find opportunities that increase BlueStone’s holdings in its core areas.”
Founded in 1988, Natural Gas Partners (NGP) is a $7.2 billion family of investment funds organized to make direct equity investments in private energy enterprises. In addition, two co-investment funds were created with $350 million available to invest in direct oil and gas property interests alongside NGP’s portfolio companies. NGP is part of the investment platform of NGP Energy Capital Management, the premier investment franchise in the energy industry with $9.5 billion in cumulative capital under management.