Bluestone Natural Resources II buys 75 wells in south Texas
BY ROD WALTON World Staff Writer
Thursday, January 17, 2013
1/17/13 at 4:43 AM
Local companies are major players
in a vital industry.
The second version of Bluestone Natural Resources is growing fast but staying focused on buying conventional natural gas assets much like its original incarnation did more than five years ago, President John Redmond said.
Tulsa-based Bluestone Natural Resources II, founded last February, announced its seventh acquisition in the past 11 months. It bought 75 unconventional wells in south Texas from an undisclosed buyer, bringing the company's proved reserves to more than 100 billion cubic feet equivalent.
"We had a very busy 2012 and it's gearing up to be a busy 2013," Redmond said. "Everybody here loves what they do."
Redmond and his team started the original Bluestone Natural Resources, known as Bluestone I, in 2006 with a $40 million commitment from the Natural Gas Partners private equity firm based in Irving, Texas.
Much of Bluestone I's assets were merged with Houston-based Memorial Energy Partners in late 2011. The Tulsa company, however, still exists and continues to develop its Mossy Grove holdings that include approximately 22,000 net acres in east Texas.
Bluestone II, like Natural Gas Partners and New York equity firm KKR & Co, is investing in natural gas drilling sites despite the commodity's current low price at market. KKR and Natural Gas Partners teamed up with other investors to buy Tulsa-based natural gas heavy Samson Investment Co. in December 2011.
Redmond sees his company on the same path, buying up gas leases at a time when other firms are desperate to raise the oil percentage of their holdings. Bluestone II was started with a $100 million commitment from Natural Gas Partners.
"We're very much more acquisition centric than drilling centric," Redmond said. "We feel like it's a good time to be buying in the gas market."
Bluestone II does operate its wells, including those leases it bought up from sellers such as BXP Partners, Anadarko Petroleum, Chevron Corp. and RimRock Energy LLC. The properties are conventional, vertical gas wells concentrated in the Barnett Shale and south Texas.
Bluestone II employs about 25 people locally. It also has a field office in Laredo, Texas, and smaller offices in Dallas and Houston.
Bluestone Natural Resources II timeline
December 2011: Bluestone Natural Resources I divests nearly 600 wells in deal with Memorial Energy Partners.
February 2012: Newly created Bluestone II starts with acquisitions of 10,000 gross acres in Barnett Shale of central Texas and buying 101 operated wells from Anadarko Petroleum's south Texas assets.
March 2012: About 10 conventional wells in south Texas bought from unnamed San Antonio operator.
May 2012: Bluestone II buys about 10 wells in Hostetler Field of south Texas from Chevron at auction.
October 2012: RimRock Energy LLC sells 14,000 acres of Barnett Shale assets to Bluestone II.
December: Bluestone II acquires about 100 south Texas wells from undisclosed seller.
January: Company announces latest deal, buying 75 south Texas wells from another undisclosed seller.
Original Print Headline: Bluestone buys 75 wells
Rod Walton 918-581-8457