Houston-based Quintana Capital Group has announced that Quintana Energy Partners and its affiliated partnerships, alongside D-O-R Engineering, have completed the formation of Prize Petr
Houston-based Quintana Capital Group has announced that Quintana Energy Partners and its affiliated partnerships, alongside D-O-R Engineering, have completed the formation of Prize Petroleum.
Prize Petroleum’s assets will consist of lease rights to three oilfields, the Neches Field in east Texas, the Homer Field in north Louisiana, and the Rich Field in Michigan.
The assets are over 90 per cent 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, Quintana Energy Partners and Prize actively will pursue acquisitions of properties that complement the assets.
Brock Morris, managing director of Quintana Energy Partners, says: ‘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.
‘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,’ McKenzie says. ‘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.’
Quintana Capital Group is the general partner of a USD650m private equity fund focused on control-oriented investments across the oil and gas and coal and power industries.
Based in Lafayette, Louisiana, D-O-R has provided drilling, operations, and reservoir engineering to the oil industry for more than 35 years.