• Nabors Industries Ltd., Houston, (NYSE: NBR) and Greenwich, Conn.-based private-equity firm First Reserve Corp. plan to form NFR Energy LLC to invest in oil and gas exploitation opportunities worldwide, with $1 billion in equity. NFR will pursue operated and nonoperated working interests, joint ventures, farm-outs and acquisitions with existing Nabors customers and other operators.

Calyon Securities (USA) Inc. analysts Mark S. Urness and John Marrin say, "...The creation of NFR is a relatively low-risk proposition that will leverage NBR's extensive drilling operations and new rig technology into interests in E&P properties. Nabors has made similar investments in the past that have done well, including the 20% interest that it took in a joint venture with Lehman Brothers and El Paso (NYSE: EP) back in October 2003."



• Denver-based Infinity Energy Resources Inc. (Nasdaq: IFNY) is exploring strategic alternatives, including the possible sale of all or part of the company. Infinity has retained New Orleans-based Capital One Southcoast Inc. as its financial advisor.



• Augustus Energy Partners LLC, Billings, Mont., has been formed by several former executives of United States Exploration Inc. to acquire and exploit in the Rockies, Midcontinent and Gulf Coast.

USE was sold in March to Noble Energy Inc., Houston, (NYSE: NBL) for $411 million.

Steven D. Durrett, AEP founder, president and chief executive, will be joined by Kenneth J. Meister, vice president, engineering; Joseph M. Owen, vice president, land; and Lou Ann Carlson, vice president, administration.

The company has received a private-equity commitment of $228 million, mostly from Greenhill Capital Partners, Kayne Anderson Capital Advisors and Lime Rock Partners, which will each have a board representative. Rivington Capital Advisors LLC, through its Rivington Securities LLC, Denver, advised Augustus on the financing of its startup.



• Avista Capital Partners, Houston, has invested $51 million of subordinated notes and Class B units in privately held Blake Offshore LLC, New Orleans, to retire senior debt and finance costs associated with rig upgrades.

Blake's fleet consists of three jackup drilling rigs, three mobile offshore production units and one self-propelled jackup workover liftboat. Blake was founded in 2001 by Mike Blake, who has built several offshore marine service companies since 1985.



• United Reef Ltd., Toronto, (Toronto Venture: URP) and privately held Alberta-based General Gas Corp. plan to form a new private company to focus on low-risk shallow conventional gas projects chiefly in southern Alberta and Wyoming.

• Scotia Waterous has named Shaun Finnie and Stephen Pugh managing directors and Curtis Newstrom a director in its Houston office. Finnie has been with the firm three years. Pugh was general manager, engineering and operations, Gulf Coast, for Burlington Resources and ConocoPhillips and vice president of A&D in Burlington's Canadian division. Newstrom was a manager of business development for Burlington Resources and ConocoPhillips.



• Tim Curry, Michael Musser and Chris Peracchi have joined KeyBanc Capital Markets' industrial and energy groups as directors. Peracchi was a director in energy investment banking at A.G. Edwards & Sons. Curry and Musser were directors in industrial investment banking at Wachovia Securities.

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