DENVER, CO--(Marketwired - October 14, 2016) - Sentinel Peak Resources ("SPR" or the "Company"), a private energy company, announced today that is has entered into an agreement with the oil and gas subsidiary of Freeport-McMoRan Inc. (NYSE: FCX), to purchase their onshore California assets for $592 million plus additional consideration of up to $150 million payable in certain circumstances based on a sustained crude oil price environment over $70/barrel Brent.
SPR was formed in 2016 by Quantum Energy Partners ("Quantum") and Michael Duginski ("Duginski"), a seasoned oil and gas executive who was previously COO of Berry Petroleum ("Berry"). At Berry, Duginski helped the Company grow from a $300 million enterprise to a top operator in California and a $4.9 billion enterprise when sold in 2013. Duginski will be joined by George Ciotti, CFO and Tim Crawford, COO, who both worked with Duginski at Berry and George Paspalof, VP Operations LA Basin, an experienced California operator. Together this group will be hiring from existing Freeport-McMoRan staff and complementing them with other top operating, technical and commercial talent in their corporate office in Denver and new offices in California.
The properties are currently producing 28,000 barrels of oil per day ("Bopd") including 18,000 Bopd in the San Joaquin Basin and 10,000 Bopd in the LA Basin and Coastal properties. SPR has identified a number of economic development projects across the asset base that are attractive in the current price environment. The Company plans to pursue these oil and gas development projects, certain real estate monetizations, and further asset acquisitions in building a world class California-focused oil and gas company.
Duginski said, "This transaction provides the catalyst to build a world class team that can work with the various stakeholders in California in a safe, reliable and environmentally sensitive way as we develop and grow the business. Quantum was instrumental in helping us secure this deal and we couldn't have done it without their experience, relationships, and strong partnership."
Garry Tanner and Bill Montgomery, Partners at Quantum, said "We couldn't be more pleased to be in business with such a high quality and experienced group led by Michael Duginski. Duginski and his team have a strong track record of technical, operational, and commercial excellence which will drive significant value creation. We expect this will be the first of many acquisitions as we grow our California focused business together."
About Sentinel Peak Resources
Sentinel Peak Resources is a Denver-based company, with plans to open offices in both Los Angeles and Bakersfield. SPR is focused on acquisition, development, and exploration of oil and gas assets, primarily focusing on heavy oil development in California. SPR is led by a team of seasoned industry professionals who have spent a majority of their careers in California.
About Quantum Energy Partners
Quantum Energy Partners is a leading provider of private equity capital to the global energy industry, having managed together with its affiliates more than $11 billion in equity commitments since inception. For more information on Quantum, please visit www.quantumep.com. For investor relations, please contact Michael Dalton at (713) 452-2000.