HISTORY
Laredo Energy was formed in October 2001 by a partnership consisting of
EnCap Investments, Glenn Hart, and certain members of the senior
management of Michael Petroleum Corporation. A privately held company,
Laredo Energy is engaged in the acquisition and development of natural
gas reserves in South Texas and has offices in Houston and Laredo,
Texas. Glenn Hart serves as the President and CEO of Laredo Energy. Other members of the Laredo Energy senior management team include:
- Jerry Holditch, Senior Vice President - Gas Finding
- Jaime Casas, Chief Financial Officer
- Jim Flowers, Vice President - Drilling and Completion
- Ken Cravens, Vice President - Land
- Scott Stevenson, Vice President - Acquisitions
- Paul Thompson, Vice President - Geology
- Robert Swanson, Vice President - Accounting
EnCap was the largest shareholder of independently held Michael
Petroleum, which was sold to Calpine Natural Gas in August 2001 for $371
million. At the time of its sale, Michael Petroleum had part or full
interest in more than 115,000 acres and over 400 wells in Webb and
Zapata Counties, plus proven natural gas reserves of 218 BCFE.
The 19-year-old company specialized in the acquisition and development
of natural gas properties in the Lobo Wilcox Trend of South Texas. It
was also the third largest gas producer and the sixth largest taxpayer
in Webb County, at the time, the largest natural gas producing county in
Texas.
Since its formation in 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 of their working interest
partners sold a portion of their producing and undeveloped properties to
Chesapeake Energy Corporation for $200 million. Production at the time
of the sale was approximately 30 MMcfe per day. Chesapeake (according to
press releases) 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 of their 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 under which were 415 Bcfe
of Proved and Probable Reserves (as estimated by Laredo). Gross daily
operated production at the time of the sale was approximately 40 MMcfe
per day.
On January 1, 2007, Laredo Energy and certain of their 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 under which were 84 Bcfe
of Proved Reserves (according to press release). Gross daily operated
production at the time of the sale was approximately 19 MMcfe per day.
