Quantum Energy Partners To Sell A Portion Of Anadarko Basin Assets For $336 Million

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Purchased producing and undeveloped assets in the Anadarko Basin of Ellis and Roger Mills counties.

Quantum Energy Partners has announced announce that Primary Natural Resources III LLC, a portfolio company led by CEO Rich Talley, has closed the sale of its producing and undeveloped assets located in Ellis and Roger Mills Counties in Western Oklahoma for $336 million.

Houston-based Quantum made its initial investment in Primary in 2008, partnering with Talley, a proven entrepreneur with a highly successful track record of building private equity-backed companies, according to a release. Primary is a Tulsa-based company focused on acquiring, exploiting and developing assets in the Mid-Continent area. Since inception, the company has deployed capital across a range of opportunities including a small producing property acquisition, multiple leasehold acquisitions, and an aggressive development drilling program focused in Ellis, Roger Mills and Custer Counties in the Anadarko Basin of western Oklahoma.

With regard to the assets being sold, Talley and the management team successfully executed the business plan with a focus on building and developing a core acreage position, driving down costs and optimizing drilling and completion techniques in order to generate repeatable, top-decile development economics relative to other basins in North America. At the time of sale, the company had built its position in Ellis and Roger Mills Counties to more than 10,000 net acres producing in excess of 2,650 barrels of oil equivalent (BOE) per day (over 90% operated), with oil and natural gas liquids representing more than 70% of production. Talley was joined by president Mark Sheehan and COO Jack Fritts, who have both been critical to the success of Primary.

"We are excited to have had the opportunity to partner with Rich Talley and his team in a top tier North American unconventional oil play," Garry Tanner, managing director of Quantum, said in the release. "The management team did an exceptional job of creating value by building a concentrated core position and executing on a low cost, horizontal drilling program."

"I am grateful to all the Primary team members for their hard work and dedication in building this asset and successfully bringing it to market. Quantum has been a great partner for us and I look forward to developing our remaining Western Oklahoma assets with their continued support," Talley said in the release.

The company was advised by RBC Capital Markets LLC and Conner & Winters LLP.