Capstone Buys Producing Assets In West Texas

Purchase of West Texas oil and gas producing properties in Andrews and Gaines counties.

Capstone Natural Resources Partners LP has purchased West Texas oil and gas producing properties in Andrews and Gaines counties from an undisclosed private seller for $50 million.

The Capstone team identified the potential of the properties, contacted the seller, and completed the transaction through direct, proprietary negotiations. The transaction is being primarily financed with growth equity from Lime Rock Partners as part of its $100 million commitment to Capstone.

Phil Terry, chief executive of Capstone, said, "We believe that the newly acquired properties complement our existing asset base perfectly, adding production, cash flow, and low-risk drilling opportunities. The acquisition also provides Capstone with greater scale to assist us in our continuing plan to create value in every part of our strategy: high-density drilling, operational optimization, new acreage leasing, and property acquisitions."

Capstone is an exploration and production company focused on the Central Basin Platform of West Texas and Southeast New Mexico.

Formed in early 2012, the senior leadership of Capstone brought to the company's strategy a wealth of experience pursuing a similar model as senior officers of Arena Resources Inc., a publicly traded company that was sold to SandRidge Energy for $1.6 billion in 2010.

Established in 1998, Lime Rock Partners is a private equity firm specializing in the oil and gas business