When Mitch Solich, senior managing director of Denver-based SB Energy Partners, formed Shenandoah Energy in December 1999, he aimed to create good returns, acquiring and exploiting Rockies assets, mainly in the Wasatch Play. He did that, and he did it a second time. Each time, he used private-equity funding. Now, he is gathering commitments to act as a private-equity source, through his new SB Energy Partners. To state Shenandoah, Solich and partners raised $77 million of private equity from Shell Capital and Prudential Capital, and drilled 235 wells during an investment period of 19 months. The short timeframe was just the "optimal time to create value and liquidity for shareholders," Solich said. After a total capital investment of $118 million and an increase in EBITDA (earnings before interest, taxes, depreciation and amortization) of 845%, Solich and team sold the company to Questar Corp. for $421 million. "Our equity value in January 2000 was $75 million, and in July 2001 it was $296.6 million, which was a change of 296%," he told Houston Producers' Forum members recently. "That transaction worked out very well for all of our shareholders." Next, Solich and partners formed Medicine Bow Energy, to pursue opportunities in the Rockies, Midcontinent and Texas. The name was Solich's second choice; his first choice was Ox Bow. For more on this, see the September issue of Oil and Gas Investor. For a subscription, call 713-260-6441.

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