Houston, Texas-based private equity firm Quantum Energy Partners has made a majority investment in Carmel Bay Exploration Ltd., the firm announced. Financial terms of the deal were not disclosed. Carmel Bay is a Calgary-based upstream exploration and development company focused on acquiring and developing assets in the Western Canadian Sedimentary Basin. The company was founded in late 2011.
Quantum Energy Partners (“Quantum”), a leading energy private equity firm, is pleased to announce a majority investment in Carmel Bay Exploration Ltd. (“Carmel Bay” or the “Company”) with Canadian E&P veteran Patrick Manuel (“Patrick” or “Manuel”).
Carmel Bay is a Calgary-based upstream exploration and development company focused on acquiring and developing assets in the Western Canadian Sedimentary Basin. The Company was founded in late 2011 and has concentrated its efforts to date in the Montney resource play where it has technical expertise. It will also leverage off of its prior experience across other select WCSB plays to opportunistically acquire and exploit other core assets. Quantum, members of the management team and the Company’s board of directors have collectively made initial investments and/or future capital commitments in excess of $225 million to the Company.
The Carmel Bay team is led by Manuel as President and Chief Executive Officer. Manuel and his senior management team have had a consistent track record of creating value at several prior E&P companies. Most recently, Manuel was President and CEO of Monterey Exploration, a highly successful Montney focused operator. Prior to Monterey Exploration, Manuel was part of the senior management teams at Crispin Energy and Rio Alto Exploration, both of which resulted in successful exits to Canadian public entities.
Carmel Bay board members include industry leaders Murray Nunns (CEO, Penn West Petroleum Ltd.), John Brussa (senior partner, Burnet, Duckworth & Palmer, LLP), Brett Herman (CEO, TORC Oil and Gas LTD), and Don Copeland (oilfield service entrepreneur) as well as Managing Directors Garry Tanner and Dheeraj Verma from Quantum who collectively bring decades of energy investment experience to support Carmel Bay management.
Manuel remarked on the closing, “We spent significant time evaluating our financial options for growth capital and came to the conclusion that in the current volatile market, private equity capital, and more specifically Quantum, offered substantial and dependable capital which would allow us to take advantage of evolving market opportunities and grow our business relatively quickly with significant flexibility. We anticipate that with the Company’s slate of current projects, significant deal flow, and our new capital partner, Carmel Bay is positioned extremely well to build a meaningful and successful E&P company.”
“We are excited to be in partnership with such an accomplished and focused upstream operating team. The Company has already assembled a significant initial acreage position in the Montney and is aggressively pursuing a variety of other opportunities which we believe over time will deliver superior returns to our investors,” said Garry Tanner, Managing Director of Quantum Energy Partners. “We were also impressed with the high caliber board members Patrick had pulled together, all of which have continued on with the Company post our capital infusion, and believe their involvement will be extremely value-added in guiding the growth and success of Carmel Bay.”
About Carmel Bay Exploration, Ltd. Based in Calgary Alberta, Carmel Bay is led by a team of seasoned industry professionals, many with over 20 years in upstream engineering, geology, operations, marketing, and business development with a track record of success working in the WCSB.
About Quantum Energy Partners Founded in 1998, Quantum Energy Partners is a leading provider of private equity capital to the global energy industry, having managed together with its affiliates, more than $6.5 billion in equity commitments since inception.
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