BlueStone Natural Resources II and Crestwood Equity Partners Enter 10-Year Gathering and Processing Agreement
TULSA, Okla.–(BUSINESS WIRE)–BlueStone Natural Resources II, LLC (“BlueStone”) announced that it has closed on the purchase of Quicksilver Resources Inc.’s (“Quicksilver”) U.S. oil and gas assets. These assets consist of 1,017 producing wells in the Barnett Shale play, with additional holdings in West Texas. In addition, BlueStone has entered into 10-year agreements with Crestwood Equity Partners LP (NYSE:CEQP) (“Crestwood”) to gather the gas from the Alliance, Lake Arlington and Cowtown systems, which comprise the majority of the Barnett Shale assets.
This acquisition will establish BlueStone as one of the premier producers in the Barnett Shale, with ownership of more than 1,200 wells located throughout the play. When coupled with its South Texas holdings, BlueStone will have net production of more than 180 MMCFE (million cubic feet equivalent) per day. BlueStone employs more than 50 people in its Tulsa, Oklahoma headquarters and an additional 100 field employees located in offices throughout Texas.
BlueStone partnered with Natural Gas Partners to purchase the assets, leveraging its 13-year relationship with the Irving, Texas-based equity sponsor.
“BlueStone is excited about this tremendous growth opportunity,” said John Redmond, BlueStone’s President and Chief Executive Officer. “These assets are the perfect fit for our team. We are excited about moving forward with our existing team, our new team members, and new partners to grow this asset base over the coming years.”
Additionally, BlueStone is pleased to announce the promotion of Doug Redmond to Chief Operating Officer of BlueStone. Doug has more than 24 years’ experience in the oil and gas industry and had been functioning as BlueStone’s Vice President of Engineering. Doug will continue in his role as the Vice President of Engineering as he assumes his additional role as Chief Operating Officer.
About BlueStone Natural Resources II, LLC
BlueStone Natural Resources II, LLC was formed in 2012 to acquire and exploit high quality, long lived oil and gas assets. BlueStone II is the third company in the franchise formed by this management team. Please visit BlueStone’s website at www.bluestone-nr.com for additional information.
About Natural Gas Partners
Founded in 1988, Natural Gas Partners (“NGP”) is a family of private equity investment funds, with over $16 billion of cumulative equity commitments, organized to make investments in the natural resources sector. NGP is part of the investment platform of NGP Energy Capital Management, a premier investment franchise in the natural resources industry.