2010-07-26-2010-07-19-2010-07-19

Purchased operated S. TX assets, gaining appx. 10 Mcfg/d, 50 Bcfe proved.

Tulsa, Okla.-based BlueStone Natural Resources LLC reports it has closed four transactions, more than doubling its net production and reserves to nearly 20 million cubic feet of gas per day and more than 100 billion cubic feet equivalent, respectively.

The acquired assets are in South Texas and are nearly 100% operated. The acquisition activity has increased BlueStone's operated well count to approximately 500.

Financing for the activity was largely provided through a new $175 million credit facility underwritten by Wells Fargo Bank N.A.

Additionally, BlueStone has retained Tudor, Pickering, Holt & Co. as agent to aid in the divestment of its holdings in the Eagle Ford trend. BlueStone currently holds more than 10,500 net contiguous acres in La Salle and McMullen counties in Texas. To date, four wells have been completed on the acreage with a fifth waiting on completion. The average IP for each wells is in excess of 10 million cubic feet equivalent per day. That sales process is expected to conclude during the third quarter.

BlueStone was formed in 2006 utilizing funds from the management team and Natural Gas Partners. Founded in 1988, Natural Gas Partners (NGP) is a $7.2 billion family of investment funds organized to make direct equity investments in private energy enterprises. In addition, two co-investment funds were created with $350 million available to invest in direct oil and gas property interests alongside NGP's portfolio companies. NGP is part of the investment platform of NGP Energy Capital Management, the premier investment franchise in the energy industry with $9.5 billion in cumulative capital under management.