NORTH AMERICA WINNER:
Don Ritter & Garrett Smith Endurance Resources
CEO Insight... Q
Can you tell us more about Endurance Resources?
Endurance is a portfolio company backed by Limerock Partners. We are an operating company in the Delaware Basin Bone Spring play in Southeast New Mexico. We have approx 16,000 net acres, held by production, with over 200 horizontal locations in the Bone Spring, Avalon Shale and Brushy Canyon forma- tions. We are actively acquiring addi- tional acreage and production, and have an active drilling program in the Bone Spring Play.
Q
You recently secured a $100m growth equity commitment from
Lime Rock Partners; can you tell us about this deal (How you secured the investment, the investors etc.)
We decided that to maximize the value of our existing asset base, we needed to find capital that was aligned with our desire to drill a significant percentage of the location inventory, and also increase the asset base through acquisition. We were able to put together our own capital acquisition process, primarily on the depth of industry contacts that Garrett and I had in both the financial and Oil and Gas community. We assembled a short list of about 15 prospects, a summary of our opportunity and began the “Road Show”. After receiving various positive responses, we settled on a term sheet from Lime Rock partners. They were the best match in terms of capital commitment, terms, and alignment of strategy. We also did an extensive due diligence with the management of
their portfolio
companies and found a very consistent, positive interaction with all of the teams.
46 Finance Monthly CeO AwArdS 2013
I think its fair to say they did their homework on us as well.
Q
What is the focus and strategy for the investment?
The focus is on the horizontal development of the Bone Spring play in the Delaware basin. We have participated in 9 horizontal wells drilled by various other operators, and now ready to put the combined experience together with our own understanding of the play and drill our own wells. We will also make acquisitions of both acreage and production that is complementary to our existing infrastructure. We are equipped to manage the mature production that holds the deep rights to the Bone Spring, and allow an exit strategy for smaller operators with acreage, but not enough technical resources or capital to exploit these horizontal wells, which average 6-7 million
dollars each. We will continue to build the inventory and the production profile for a future exit by acquisition, merger, or public offering.
Q
What are your goals for Endurance Resources this year?
We will open a Midland office, round out the team, and drill 6 horizontal wells. We should be able to substantially increase our base production by year-end. With acceptable deal metrics, we will also acquire 3000-5000 acres and an additional 500 BOPD of base production.
Q Individual Profiles
Don Ritter- CEO of Endurance Resources – Petroleum Engineer from Marietta College, and MBA from Southern Methodist University-over 30 years in
the oil and gas business, with Senior International engineering management roles for Mobil Oil, and Geomechanics In- ternational. Drilled the first two appraisal wells in the North Field, Qatar
Garrett Smith - CFO of Endurance Resources – Electrical engineer from University of Texas and MBA from Southern Methodist
University – over 25 years in the Oil and Gas business with CFO experience at Mesa Petroleum, Pioneer Natural Resources, BP Capital, and numerous public board directorships. Spent 17 years working closely with T. Boone Pickens.
While we keep the clear corporate roles of CEO and CFO, we are equal General Partners from an equity basis in the companies.
Contact
www.enduraceresourcesllc.com
Is there anything else you would like to add?
We are always looking for good people and additional acquisition opportunities.
USA
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