SOURCE: EnergyQuest Management LLC

June 23, 2005 06:00 ET

EnergyQuest Acquires Three Properties Expanding Holdings in Kansas and Oklahoma

HOUSTON, TX -- (MARKET WIRE) -- June 23, 2005 -- EnergyQuest Management LLC is pleased to announce the acquisition of three coal bed methane properties by EnergyQuest Resources, LP ("EnergyQuest") in the Cherokee Basin of southeastern Kansas and northeastern Oklahoma. These properties include:

--  Offset producing acreage to their present holdings in Montgomery
    County, Kansas.
--  Rogers County, Oklahoma.
--  Tulsa County, Oklahoma.
    
EnergyQuest will operate all three fields. The acquired properties follow hard on the heels of three acquisitions made during the last two quarters and increased EnergyQuest's proved reserves by 41%, net daily production by 55% and added 8,700 net productive acres. EnergyQuest also acquired gathering and processing systems in all three fields, whereby EnergyQuest added 26 miles of pipeline to its asset base, increasing the total to 76 miles operated by the company. EnergyQuest will process and transport gas from third party sources as well as its own production. Wayne Greenwalt, EnergyQuest's CEO, stated that these properties represent a significant opportunity to add value through an aggressive drilling program that is already in progress.

Complementing its acquisition activities, during the first half of 2005, EnergyQuest has drilled 10 wells of a planned 40 well drilling program on its coal bed methane acreage. EnergyQuest estimates that this drilling program will add 4.4 BCF of PDP reserves and 2.0 BCF of PUD reserves. EnergyQuest also performed multiple workovers during the first half of 2005, which increased production by 16.5%.

EnergyQuest is a portfolio company of Houston-based Quantum Energy Partners. Quantum is a private equity firm specializing in the energy industry with more than $670 million of capital under management.

For additional information concerning these transactions or to explore future acquisition opportunities with EnergyQuest, please contact Wayne Greenwalt or Jerry Crews at (281) 875-6200.

Contact Information

  • Contact:
    Wayne Greenwalt or Jerry Crews
    (281) 875-6200