2008-09-02-2008-06-05-2008-07-11

Bought co., gaining 78,000 net acres largely in Marcellus shale in WV, PA, NY, gaining 99.6 Bcfe proved, 3.3 MMcf/d net.

Quest Resource Corp., Oklahoma City, (Nasdaq: QRCP) has acquired privately held, Houston-based PetroEdge Resources (WV) LLC for approximately $140 million. PetroEdge's assets include approximately 78,000 net acres of producing properties in West Virginia, Pennsylvania and New York (100% operated, 81% average net revenue interest). Approximately 67,000 acres are in the Marcellus shale fairway, consisting of approximately 41,000 net acres in Ritchie, Wetzel and Lewis counties, West Virginia, approximately 22,000 net acres in Lycoming County, Pennsylvania, and approximately 3,000 net acres in Steuben County, New York. Net production is 3.3 million cubic feet of gas equivalent per day. Proved reserves are 99.6 billion cubic feet of gas equivalent (32.9 billion proved developed, 95% gas). Approximately 48% of reserves are proved developed producing. Proved, probable and possible reserves are up to 675 billion cubic feet equivalent. Pro forma, Quest Resource will have the right to develop approximately 119,000 net acres in the Marcellus shale. Quest Resource chairman, president and chief executive Jerry Cash says, "Quest Energy is acquiring long-lived natural gas producing properties that are expected to be immediately accretive to distributable cash-flow per unit, will add geographic and geologic diversity, and will offer numerous low-risk development opportunities." Quest Resource will sell the PetroEdge assets to MLP Quest Energy Partners LP (Nasdaq: QELP) in which Quest Resource owns 100% of the general partner and a 57% limited partner interest in Quest Energy. Quest Midstream Partners LP has the right of first offer on gathering and processing Quest and Quest Energy's production. Quest Resource plans to fund the acquisition from PetroEdge with the net proceeds from a planned equity offering and the net proceeds from the sale of the proved developed reserves and production to Quest Energy. Quest Energy plans to fund its acquisition from Quest Resource with a combination of debt and the proceeds from the sale of equity.