Formed in 2001, Laredo Energy is a privately held company engaged in the acquisition and development of natural gas and oil reserves in South and East Central Texas. Laredo has more than 350 Bcfe in proved reserves and more than 50 MMcfe per day in gross operated production. The company’s assets include 62 operated producing wells, more than 110,000 gross acres of operated leases and non-operated interests in more than 31,000 gross acres. Laredo expects to drill 25 to 30 wells per year.
The company’s management team has worked together since 1983 and is led by Laredo’s President and CEO, Glenn Hart. The group has a collective 200 years experience in the oil and gas industry and has drilled more than 300 wells in South Texas. Laredo continuues to target multi-stacked natural gas pay zones in Webb County. Today Laredo is also leasing acerage in Brazos, Burleson and Robertson counties where we are targeting target the emerging Eaglebine formation. Laredo is backed by private equity investments from Avista Capital Partners and Old Ironsides Energy, LLC.
Laredo Energy's founders include Glenn Hart and members of the senior management of Michael Petroleum Corporation. Glenn Hart led Michael Petroleum for 19 years, until the company was sold to Calpine Natural Gas in August 2001 for $371 million.
Michael Petroleum specialized in the acquisition and development of natural gas properties in the Lobo Wilcox trend in South Texas. It was also the third largest gas producer and the sixth largest taxpayer in Webb County, the largest natural gas producing county in Texas at the time. At the time of its sale, Michael Petroleum had partial or full interest in more than 115,000 acres and more than 400 wells in Webb and Zapata counties, in addition to proven natural gas reserves of 218 BCFE.
Since 2001, Laredo Energy has sold the majority of its assets to larger public companies on three separate occasions. On October 31, 2003, Laredo Energy and certain working interest partners sold a portion of their producing and undeveloped properties to Chesapeake Energy Corporation (NYSE: CHK) for $200 million. Production at the time of the sale was approximately 30 MMCFE per day. Chesapeake announced that they acquired an estimated 196 BCFE of reserves, of which 108 BCFE are proved and 88 BCFE are possible or probable.
On March 31, 2005, Laredo Energy and certain working interest partners sold a portion of their producing and undeveloped properties to Chesapeake Energy Corporation for $369 million. The assets consisted of approximately 41,000 gross (38,400 net) acres with 415 BCFE of proved and probable reserves. Gross daily operated production at the time of the sale was approximately 40 MMCFE per day.
On January 1, 2007, Laredo Energy and certain working interest partners sold a portion of their producing and undeveloped properties to El Paso Corporation for $255 million. The assets consisted of approximately 27,000 gross (23,000 net) acres with 84 BCFE of proved reserves. Gross daily operated production at the time of the sale was approximately 19 MMCFE per day.