Quintana Capital Group, L.P. announced that Quintana Energy Partners, L.P. and its affiliated partnerships, alongside D-O-R Engineering, Inc. ("D-O-R") have completed the formation of Prize Petroleum, LLC. The assets of Prize will consist of lease rights to three fields: the Neches Field in East Texas, the Homer Field in North Louisiana, and the Rich Field in Michigan. The assets are over 90% oil and are characterized by stable, mature, and shallow decline production profiles. The producing reserves have a reserve life of over 20 years. Prize will look to grow production by a combination of well reactivations, lift enhancements, and drilling. Additionally, QEP and Prize actively will pursue acquisitions of properties that complement the assets.
Brock Morris, Managing Director of QEP, commented, "With this acquisition as an anchor, Prize will pursue additional acquisitions of long-lived oil and gas reserves in mature fields. We believe that this type of asset is an excellent investment in today's strong, yet volatile commodity price environment. They are often found in mature fields containing numerous reservoirs, in which we believe significant untapped opportunities still remain."
The management team of D-O-R, led by President Michael F. McKenzie, will manage the properties. Mr. McKenzie and his staff are excited about launching this new company. "In addition to having a relationship with Quintana that dates back over 30 years, we have extensive experience with and knowledge of fields of this type. We look forward to the challenge of building a new company to further develop and extract additional value from these assets as well as those from future acquisitions."
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