Randy Foutch has formed Midcontinent-focused, Tulsa, Oklahoma-based Laredo Petroleum with private equity from management and a commitment of $300- to $500 million from Warburg Pincus based in New York. Laredo also has a $300-million revolving-credit bank facility.

Foutch has created and sold three Midcontinent-focused E&P companies, including Lariat Petroleum and Latigo Petroleum. Warburg Pincus provided equity funding for these companies as well. Lariat was founded in 1997 and sold in 2001 to Newfield Exploration Co. for approximately $333 million; Latigo was formed in 2002 and sold in 2006 to Pogo Producing Co. for approximately $750 million.

At Laredo, Foutch is joined by Jerry Schuyler as chief operating officer. Schuyler has more than 30 years of experience at Arco Oil & Gas, Dominion E&P and St. Mary Land & Exploration. Also forming Laredo are Pat Curth, Oran Hall, Mark Womble and other former colleagues of Foutch's.

Laredo has already made a $75-million acquisition: assets from Austin, Texas-based Jones Energy Ltd., involving 130 producing properties primarily in Hansford County, Texas.

Foutch says, "In the current market environment, there is no shortage of capital available for investment in upstream oil and gas properties. However, Warburg Pincus distinguishes itself as one of the largest, most experienced and most sophisticated private-equity investors in the E&P sector, and I believe that Laredo is best positioned for long-term success through this partnership."

Warburg Pincus managing director Jeffrey A. Harris says, "Our previous investments in Lariat and Latigo were very successful, primarily due to the talents of Randy Foutch and his team. We welcome the addition of Jerry Schuyler to the team and are thrilled to have another opportunity to work with such a talented group of entrepreneurs."

Separately, HighMount Exploration & Production LLC is the new Loews Corp., New York, E&P subsidiary formed from the acquisition of some $4 billion worth of U.S. onshore assets from Dominion Resources Inc., Richmond, Virginia.

HighMount's assets are in the Permian Basin, the Antrim Shale (Michigan) and the Black Warrior Basin (Alabama). Proved reserves are approximately 2.5 trillion cubic feet of gas equivalent. Loews paid $1.61 per thousand cubic feet equivalent of proved reserves, according to its advisor, Merrill Lynch Petrie. Dominion E&P senior vice president of E&P Timothy Parker is now Loews' E&P subsidiary leader.

Loews chief executive James Tisch says, "These long-lived and low-risk natural gas producing assets represent an excellent platform for Loews to enter the exploration and production business. We have a favorable long-term view of natural gas pricing in the U.S. and believe natural gas will increasingly be the fuel of choice in the future."

Dominion has sold 85% of its E&P reserves. It has retained its Appalachian E&P operations and will otherwise focus on its utility business.

Also, privately owned, Houston-based Opal Resources LLC has received an equity commitment from an affiliate of Goldman, Sachs & Co.

Opal Resources will focus on the acquisition, development and exploration of reserves primarily in onshore basins in Texas, New Mexico, Oklahoma and Louisiana. Opal Resources was formed in July by Myra Dria, chief executive, and Rick Lester, chief financial officer, who have also made equity commitments.

Dria says, "We are immensely excited about the opportunity to partner with Goldman Sachs. We believe market fundamentals will continue to be favorable for the foreseeable future, providing an ideal situation for Opal Resources."

Dria is a petroleum engineer and has nearly 30 years of oil and gas experience in North and South America, most recently as New Mexico asset manager for BP North America. Lester has more than 30 years of oil and gas experience with start-up and public oil and gas companies, most recently as CFO of Mariner Energy Inc.

Tortoise Capital Advisors LLC, Overland Park, Kansas, has capitalized Tortoise Gas and Oil Corp. with equity of $82.9 million before fees and expenses. The company anticipates it will have available capital in excess of $100 million for direct investments in energy producers.

Tortoise Capital managing director David Schulte says, "We formed Tortoise Gas and Oil Corp. primarily to respond to the growing need by private and public U.S. energy production partnerships for timely and flexible direct placement financing to fund internal growth projects and acquisitions."

Tortoise Gas and Oil will invest directly in privately held companies and publicly traded MLPs operating primarily upstream, and to a lesser extent the midstream market.

Backed by Houston-based private-equity provider Quantum Energy Partners, the founders of EnergyQuest Resources LP have formed EnergyQuest II LLC and acquired certain southwestern and central Louisiana assets from Houston-based Hilcorp Energy Co. for approximately $135 million. The assets include interest and operations in the Colgrade, Crowley North, Neale, and White Lake West fields. EnergyQuest II is funded by management and Quantum Energy Partners IV LP.

Getting started with some EnergyQuest I assets is Houston-based Layline Petroleum I LLC, which has acquired assets in Texas and Oklahoma for approximately $17 million.

The assets include production and other assets in Bosco Field, Acadia and St. Landry parishes, Louisiana; Odem Field, San Patricio County, Texas; NE IAB Field, Coke County, Texas; and Woodlawn Field, Marion and Harrison counties, Texas.

Net production is approximately 285 barrels of oil equivalent per day. Total net proved reserves as of April 1 were 3.8 billion cubic feet of gas and 1.15 million barrels of oil. All properties other than Odem Field will be operated by Layline.

Layline president Chris Lewis says, "This acquisition provides a solid foundation upon which Layline will build a first-class E&P company. EnergyQuest's team was very professional in helping us launch our new company."

Lantana Oil & Gas Partners marketed the items for EnergyQuest I. CIT Energy, a unit of CIT, provided financing for Layline's debut.

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