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Quantum Energy Partners’ Primary Natural Resources closes sale of Andarko Basin assets for $336 mln

Primary Natural Resources III, a portfolio company of Quantum Energy Partners, has completed the sale of its Anadarko Basin assets in Ellis and Roger Mills Counties in Western Oklahoma for $336 million. The buyer has not been identified. RBC Capital Markets and Conner & Winters advised Primary on the transaction.


HOUSTON, TX–(Marketwired – Dec 24, 2013) – Quantum Energy Partners (“Quantum”) is pleased to announce that Primary Natural Resources III, LLC (“Primary” or the “Company”), a portfolio company led by CEO Rich Talley (“Talley”), has closed the sale of its producing and undeveloped assets located in Ellis and Roger Mills Counties in Western Oklahoma for $336 million.
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. 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 over 10,000 net acres producing in excess of 2,650 boepd (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,” said Garry Tanner, Managing Director of Quantum. “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,” said Talley.
The Company was advised by RBC Capital Markets, LLC and Conner & Winters, LLP.
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. For more information on Quantum, please visit For investor relations, please contact Michael Dalton at (713) 452-2000.