Thanks to commodity price changes and a flood of new money, private capital providers are exploring new areas for investing, speakers said at the 9th annual Private Capital for Energy Forum, sponsored by COSCO Capital Management and Oil and Gas Investor in Houston in June. The risks seem to be greater now. "We spend a lot of time making a precise base case, but all we've done is create a number you won't hit. Everyone always comes in below it or above it," said Wellford Tabor, partner at Wachovia Capital Partners. Despite this, capital providers continue to grab attention with the size of the funds they have been able to raise in the past 24 months. All agreed the size is driven by the opportunity set they see, and the interest of institutional investors for the energy sector. "We are operating more internationally and that seems to require more capital, so the price of poker has gone up in this business," said Jonathan Farber, managing director of Lime Rock Partners. For more on this, see the June issue of Oil and Gas Investor. For a subscription, call 713-260-6441.

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