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Natural Gas Partners makes USD65m equity investment in Parsley Energy

Parsley Energy has closed on a USD65m preferred equity investment by Natural Gas Partners (NGP).

 
Parsley is a Midland, Texas-based company that was founded by its chief executive Bryan Sheffield in 2008. With nine rigs running, Parsley is one of the most active operators in the prolific Midland Basin. Since its inception, Parsley has drilled over 270 wells and is currently producing over 17,000 barrels of oil equivalent per day (Boepd) on a gross operated basis and over 5,000 Boepd on a net basis.
 
Parsley will continue to focus on vertical development in the Wolfberry play and will also begin its horizontal drilling programme in the fourth quarter of 2013.
 
“Parsley is very excited about our new partnership with NGP. When the company was founded in 2008, we were financed through development packages with individual working interest owners. As we continued to grow, we obtained debt financing and tactical support from our partners Western National Bank and Chambers Energy Capital. We believe that this equity investment by NGP is a milestone in the next phase of our growth and is representative of the maturation of our business. NGP demonstrated considerable creativity and flexibility to find an investment structure that fit with Parsley’s goals, and already, NGP has proven to be a valuable resource for strategic advice and industry knowledge,” says Bryan Sheffield, chief executive of Parsley. “Importantly, our management team will continue to own the majority of the equity of Parsley as we focus on long-term value creation.”
 
“We are thrilled to partner with Bryan and the high quality management team he has assembled at Parsley. The Parsley team has done an outstanding job of building a sizeable and dynamic independent oil and gas company in a short period of time, and we believe the company is well positioned to create significant value in the years ahead. We have been very impressed with the Parsley management team and are excited to support their continued growth,” says Tony Weber, senior managing director at NGP. “Parsley has been a leader in the evolving Wolfberry play, and we expect that the company’s operational expertise will continue to create value as the basin shifts toward more horizontal development.”

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