Coral Reef Capital has made an investment in Covington, Louisiana-based Krewe Energy LLC, an oil and gas company. No financial terms were disclosed.
New York, NY (January 9th, 2017) – Coral Reef Capital is pleased to announce a new investment in Krewe Energy, LLC (“Krewe Energy” or the “Company”) to recapitalize the Company and further support its growth. Funds provided by CRC Resources Fund II LP and CRC Energy Fund LP were used to pay off all outstanding senior bank indebtedness of the Company, fund the acquisition of the Coquille Bay Field, and redeem an interest in the Company from its existing sponsor, Sage Road Capital. Financial terms of the transaction were not disclosed.
Krewe Energy was formed in 2013 by its founders, Tom De Brock and Barry Salsbury, in partnership with Houston, Texas-based Sage Road Capital. Based in Covington, Louisiana, Krewe Energy engages in the acquisition, exploitation and development of oil and gas assets, with a specific focus on conventional production opportunities in South Louisiana.
Barry Salsbury, Managing Partner of Krewe Energy, commented, “The Coral Reef team’s view of risk and capital allocation closely aligns with those of Krewe management and existing stakeholders. Since our founding in 2013, Krewe has completed several acquisitions and been successful in growing production and reserves substantially. With this transaction, we have created an exceptional partnership with two strong financial sponsors and positioned the Company with a strong balance sheet and access to additional growth capital. We look forward to continuing our acquisition and development strategy in the Gulf Coast market.”
Jared Powell, a Partner at Coral Reef Capital, commented, “Coral Reef is thrilled to partner with such a high quality group. Barry, Tom and the rest of the Krewe team have consistently demonstrated their ability to create value in the Gulf Coast across market cycles. We expect to continue deploying both acquisition and development capital to expand the business together.”
Locke Lord LLP served as legal counsel to Coral Reef Capital. Porter Hedges LLP served as legal counsel to Sage Road Capital.
About Krewe Energy
Krewe Energy, LLC is a privately held independent oil and gas company headquartered in Covington, Louisiana. Krewe Energy, LLC is engaged in the acquisition, exploitation and development of producing fields within the shallow State waters of the Gulf of Mexico, inland marsh and onshore areas of South Louisiana and the great Gulf Coast region. For more information, please visit www.krewe-energy.com.
About Coral Reef Capital
Coral Reef Capital is a New York-based private investment firm that focuses exclusively on private equity investments in the natural resources sector, including oil & gas exploration and production, metals & mining, and related services. For more information, please visit www.coralreefcapital.com.