?Encore Acquisition Co., Fort Worth, Texas, (NYSE: EAC) has retained Lehman Brothers Inc. to explore strategic alternatives, including a sale or merger.
Encore focuses onshore the U.S., with interests in properties in the Cedar Creek Anticline in the Williston Basin of Montana and North Dakota; the Permian Basin; the Rockies including in the Williston, Big Horn and Powder River basins of Montana, North Dakota and Wyoming and Paradox Basin of southeastern Utah; and the Midcontinent, including the Arkoma and Anadarko basins of Oklahoma, North Louisiana Salt Basin and East Texas Basin.
Proved reserves are 231 million BOE. Production during first-quarter 2008 was 38,196 BOE per day. Upside potential includes 35 enhanced oil-recovery projects representing more than 450 million BOE and an additional 2,500 drilling locations.

• Gastar Exploration Ltd., Houston, (Amex: GST) and Mount Pleasant, Mich.-based GeoStar Corp. have settled their dispute over Gastar shares GeoStar believed it was owed.
Gastar will pay GeoStar approximately $25.7 million in cash plus a warrant to purchase 10 million Gastar shares. GeoStar is assigning all its oil and gas interests in West Virginia and Pennsylvania to Gastar while Gastar acknowledges GeoStar’s clear title in an Australian exploration license (EL 4416) and assigned its interest to GeoStar’s Australian subsidiary in an exploration license application (EL 4968) in the Gippsland Basin of Victoria, Australia.
Gastar chairman, president and chief executive J. Russell Porter says, “We are pleased that we were able to reach a mutually agreeable resolution with GeoStar and put this litigation behind us. Gastar will continue its business plan without delay focusing on the continued development of our East Texas properties and our Australian coalbed-methane assets located in New South Wales.”

• CNX Gas Corp., Pittsburgh, (NYSE: CXG) has settled the litigation it had pending with Houston-based CDX Gas LLC in a Pennsylvania district court regarding certain CDX patents relating to horizontal-well designs.
CNX Gas affirmed the validity and enforceability of the patents at issue in the litigation and has licensed the CDX technology from CDX. CNX Gas is not required to pay CDX any cash considerations for CNX Gas’ prior drilling activities. The pending litigation has been dismissed with prejudice. The parties have entered a joint venture for several properties.

• New York-based RBC Capital Markets, the investment-banking arm of Royal Bank of Canada, (NYSE; Toronto: RY) plans to acquire Houston-based, U.S.-focused upstream asset marketer and advisor Richardson Barr & Co. for an undisclosed price.
The A&D firm was co-founded in 2003 by Scott Richardson and Steve Barr. Richardson Barr will now be able to provide corporate transaction services. The new entity will be known as RBC Richardson Barr and expand RBC’s M&A work in the U.S.
Richardson says, “This transaction will allow us to provide a much broader range of services to our clients, backed by the financial strength and stability of RBC. Aligning ourselves with such a well-respected firm also allows us to maintain our reputation for integrity, excellence and quality execution.”
RBC Capital Markets head of investment banking Peter de Vos says, “Richardson Barr brings to RBC Capital Markets a strong industry reputation, experienced engineers, geologists and finance professionals, a dedicated focus on acquisitions and divestitures in the E&P sector and a terrific cultural fit.
“This partnership also brings new M&A opportunities to our public market clients by providing them with private-company asset-transaction capabilities.”
Closing is expected in the third quarter of 2008.

• Claire Farley, co-president of energy-banking firm Jefferies Randall & Dewey, will leave the firm to return to the oil and gas industry. New York-based investment bank Jefferies & Co. Inc. has named Ralph Eads III chairman of Jefferies Randall & Dewey and vice chairman, Jefferies & Co. He was co-president of the Jefferies Randall & Dewey with Farley.
Stephen Straty and David Rockecharlie have been named group co-heads. Straty was senior managing director and head of the natural resources group of Bear Stearns. Rockecharlie is an energy banker with Jefferies.
Jefferies chairman and chief executive Richard B. Handler says, “We also wish Claire the best as she returns to her roots as an industry executive and look forward to working with her as an advisor and client.”
Jefferies Randall & Dewey’s traditional A&D business will be led by Bill Marko, Warren Keyes and Joe Gladbach.

• Comet Ridge Ltd., Melbourne, Australia, (Australia: COI) plans to received US$100 million in a bridge financing facility from New York-based private equity fund Pine Brook Capital Partners to fund its U.S. E&P activities prior to its sale of U.S. assets to a new company formed by Pine Brook, Comet Ridge Resources LLC.
Comet Ridge Resources will hold Comet Ridge’s U.S. assets, consisting of subsidiary St. Helens Energy LLC’s two-year lease option on more than 420,000 acres in the Grays Harbor Basin in western Washington.

• Dallas-based Holbrook Energy Inc., has filed an S-1 to IPO 25.45 million shares at $0.12 each in a total raise of $3.1 million on the Pink Sheets. A ticker has not been chosen yet and the offer is self-underwritten.
Holbrook Energy will offer 25 million shares and selling shareholders will offer 454,000. Holbrook energy will use the proceeds of its share sale to pay offering expenses, and fund working capital and the acquisition of oil and gas royalties and mineral rights. It will not receive any proceeds from the shares offering by selling shareholders. Jeremy B. Holbrook is president and chief executive. He has experience in the oil and gas industry and worked for Ford Motor Co.
Holbrook Energy focuses mainly on oil and gas royalties and mineral rights in Texas, Louisiana, Oklahoma, Arkansas, Kentucky, Kansas, Colorado, New Mexico and California. It does not drill or extract oil, gas or minerals.

• New York-based investment bank BNP Paribas has named Anthony Saracco vice president of its energy and natural resources team within its Americas corporate-finance practice. He was vice president in the multi-industries group for Merrill Lynch and has experience with Goldman Sachs and Drueker & Co.

• Riverstone Holdings LLC, New York City-based private-equity firm specializing in energy and power sectors, has named Stephen Coats a managing director and general counsel, a new position. Coats was with the law firm Vinson & Elkins LLP, where he was a partner. “Riverstone is one of the most respected private equity firms in the energy and power industry,” Coats says. “I look forward to joining such a talented team.”

• Boston-based private equity firm Denham Capital Management LP has closed Denham Commodity Partners Fund V LP with a $2-billion hard cap, exceeding the $1.75-billion targeted commitment. More than 90% of Denham’s existing limited partners participated in Fund V, which include primarily well-established endowments, foundations and similar institutions as well as high-net-worth individuals.
The closing brings Denham’s committed capital to approximately $4.3 billion. Denham typically targets investments in the $50- to $250-million range in areas including energy infrastructure, natural resources, power and carbon primarily in the U.S., Canada, South America and Europe.

• Westport, Conn.-based energy private-equity firm Lime Rock Partners, has closed its fifth fund, Lime Rock Partners V LP, with $1.4 billion in capital commitments. Lime Rock Partners V was funded by 78 institutional investors, including endowments, foundations and pension funds, with the firm beginning fund-raising in February. It was not actively marketed, and 91% of capital came from existing Lime Rock investors.
Lime Rock managing director Jonathan Farber says, “We are grateful for—and humbled by—the support of the investors in Lime Rock Partners V.?Almost all of the investors in Lime Rock Partners IV also made capital commitments to the new fund.”
Lime Rock Partners funds have invested $1 billion in 47 energy-portfolio companies worldwide, primarily in the E&P, energy-service and oil-service technology sectors. Those funds have realized $1.7 billion and continue to hold investments in other portfolio companies. Lime Rock manages $3.5 billion of private capital for investment in the energy industry through Lime Rock Partners and Lime Rock Resources, an E&P company.

• Superior Oil and Gas Co., Calumet, Okla., has filed an S-1 to offer 1.5 million shares at US$0.20 each and 1.5 million shares at US$0.25 each for a selling shareholder on the OTC Bulletin Board as SIOR. Superior will not receive any proceeds from the sale. The shareholder will offer the 3 million shares from time to time through brokers at fluctuating market prices.

• Approach Resources Inc., Fort Worth, Texas, (Nasdaq: AREX) reports that shareholder Yorktown Energy Partners V LP, a fund managed by New York-based private equity firm Yorktown Partners LLC, has distributed 940,979 Approach shares to Yorktown V limited and general partners.
Following the distribution, Yorktown V, with Yorktown Energy Partners VI LP and Yorktown Energy Partners VII LP, will continue to hold 8.5 million shares, representing 41% of outstanding stock.
The shares can be immediately resold, but the principals of the general partner intend to retain the shares for the foreseeable future.
Approach president and chief executive Ross Craft says, “Yorktown has been and continues to be a supportive investor in Approach. We expect that Yorktown V’s initial distribution and any future distributions will improve the liquidity available to investors in Approach. We are pleased that the principals of the general partner of Yorktown V are continuing to hold their investments in Approach.”

• Mandeville, La.-based energy investment bank Pritchard Capital Partners has named Tom Sheedy senior vice president with the firm’s institutional sales team. He was managing director of First Albany Corp. and managing director and head of sales at Robertson Stephens, San Francisco.
Pritchard managing partner and founder Thomas Pritchard says, “The current economic environment is creating unique opportunities for the investment community to capitalize on growth in the energy sector. Tom’s background with technology-sector venture capitalists, who are increasingly becoming the leading financiers of the almost $10-billion clean-technology industry, will be a valuable resource to build upon our firm’s established relationships.”
• Calgary-based Invico Capital Corp. has launched open-end mezzanine debt fund CanBridge Capital Fund LP. The fund will hold a diversified portfolio of mezzanine-type debt investments in companies generally operating in the oil and gas, oilfield services and related manufacturing, and real estate sectors throughout western Canada. Invico subsidiary CanBridge Capital Corp. will be general partner and manager of the fund.
Douglas Pigot has been named president of the general partner. He has experience in banking, finance, capital- markets advisory and general management. Jason Brooks is president of Invico and has been named portfolio manager of the general partner. He has experience in fund management, A&D and private financing in the Canadian and international oil and gas and power sectors.
Allison Taylor has been named associate portfolio manager of the general partner. She has experience in fund management and financial advisory mandates in the energy sector. Scott Reeves has been named general counsel of the general partner. He is a partner at the Calgary-based corporate law firm TingleMerrett LLP.

• London-based merchant bank The Parkmead Group Plc has formed an advisory board to assist in energy investments and has named David Bamford and Peter Davies to the board. Bamford is a director at Tullow Oil Plc. Davies is an energy economist and was chief economist at BP Plc. Parkmead recently made three investments in the oil and gas industry, including the acquisition of 3.07% of Faroe Petroleum, 0.84% of Reservoir Exploration Technology and 0.16% of PA Resources AB (subsequently exited at an IRR of 76%).

• Vancouver-based Transact Energy Corp. has filed an S-1 to IPO up to 2 million shares at US$0.25 each for a total raise of up to US$500,000. No stock market or ticker have been chosen. Transact will use the proceeds to acquire oil and gas leases, primarily in Alberta.
Roderick C. Bartlett is chief executive and president. He is president of S2C Global Systems Inc. and was president of Triple R Developments Ltd. Harold Forzley is chief financial officer and treasurer. He is CFO of S2C Global Systems and was an accountant at Thorne Riddell (now KPMG). Transact will focus on oil and gas lease interest

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