?• The boards of directors of Quest Resource Corp., Oklahoma City, (Nasdaq: QRCP) Quest Energy Partners LP, Oklahoma City, (Nasdaq: QELP) and Quest Midstream Partners LP, have accepted the resignation of Jerry Cash as chairman and chief executive of all three entities, effective immediately. In a prepared statement, the board says that the resignation followed the discovery, in connection with an inquiry from the Oklahoma Department of Securities, of questionable transfers of about $10 million of company funds.
David Lawler has been named president of each company and been appointed as director of Quest Resource Corp. to fill Cash’s vacancy. Lawler has more than 17 years of oil and gas industry experience in various senior management and engineering positions and has served as the chief operating officer of Quest Resource Corp. since May 2007. Lawler has been a director and chief operating officer of Quest Energy Partners since its initial public offering in November 2007. Before Quest, he was with Shell Exploration & Production.
The boards immediately formed a joint special committee comprised of representatives from each board, including the chairs of the audit committees of Quest Resource and Quest Energy Partners, to investigate the matter and consider the effects on the companies’ financial statements. The committee has retained Spencer C. Barasch of Andrews Kurth LLP to lead the investigation. The boards also report that chief financial officer David Grose was placed on a paid administrative leave of absence during the investigation. Quest has reported this matter to the U.S. Securities and Exchange Commission and other appropriate governmental and regulatory organizations.
The company has retained Kroll Zolfo Cooper LLC to assist in the accounting and finance functions during Grose’s absence.

• A group of energy-focused private equity funds managed by New York-based energy and power-focused private equity firm Riverstone Holdings LLC has made an undisclosed capital commitment to Fort Worth, Texas-based Titan Operating LLC .
Titan Operation is an E&P focused on acquisitions and development in the Barnett shale in North Texas.
Hollis Sullivan is co-founder and chairman of Titan. He has more than 20 years E&P experience in the Barnett shale. Mark Schumacher and Christopher Hammack are co-founders and managing partners. Schumacher was in charge of the Barnett shale development program for EnCana Oil & Gas USA. Hammack led the drilling and completions activities for Range Resources, where he managed that company’s Barnett shale division.
Riverstone managing director Greg Beard says, “With the increased activity in the Barnett shale over the last several years, a partnership with operators as experienced as Hollis, Mark and Chris represents a unique opportunity for Riverstone. We are excited to support such seasoned executives with a depth of relationships and history in the Barnett.”
Sullivan says, “A partnership with a firm as well-regarded as Riverstone is a milestone event for Titan. We believe that the opportunities in the Barnett, coupled with the sponsorship and support of a world-class private-equity partner, have the potential to elevate Titan to become a significant player in the basin.”

• Mandeville, La.-based Pritchard Capital Partners LLC, an energy investment bank and institutional financial services firm, has expanded its Washington D.C., office with the addition of Scott J. Doyle to the firm’s institutional sales group. Doyle was with Friedman Billings & Ramsey.
“We continue to develop a strong franchise to capitalize on growth opportunities in the energy sector,” says Thomas Pritchard, managing partner and the founder of Pritchard Capital Partners.
Founded in 2001, Pritchard Capital Partners’ focus is on idea generation and intelligence in the oil, gas and power markets. With its headquarters in Mandeville, the company has offices in Atlanta, Houston, New York and Washington, D.C.

• Charlotte, N.C.-based AmWINS Group, one of the nation’s largest wholesale insurance brokers, has formed an energy practice within its brokerage division. The energy division will be based in the company’s Houston office and led by Pascal Ray and Maryanne Maniaci.
“We have strong relationships with many agencies whose customers operate in the energy sector,” says brokerage division president James Drinkwater. “By forming a dedicated energy practice, we will quickly be able to bring new resources and expand our relationships.”
AmWINS operates through more than 35 offices across the U.S. and handles premium placements in excess of $3.3 billion annually.

• Aurora Oil & Gas Corp. (Amex: AOG) has closed a cashless exchange of various New Albany shale properties in Indiana in a net-acre-for-net-acre transaction with an undisclosed operator.
The North Knox County project area is on the western edge of southern Indiana and was formerly operated by Rex Operating Co. Aurora owned approximately 19,240 net acres in this project, and had not reported any proved reserves associated with its ownership. Aurora has sold its entire stake in this project.
The Eastern New Albany shale project area is on the eastern side of Aurora’s identified core New Albany shale play. The exchange resets Aurora’s acreage position, creating a new 100% owned and operated project encompassing approximately 46,560 acres in the eastern portion of the related acreage block. To date, Aurora has not drilled any wells in this area.
The Wabash project area in southcentral Indiana has been one of the primary areas of Aurora’s operated drilling activity. Aurora has increased its working-interest ownership in the leases and wells to an additional 15.68% interest, increasing its interest in the project to 64.43%. Aurora now owns approximately 79,051 net acres in the Wabash project and has recorded additional proved reserves of 1.23 billion cu. ft.

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