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 CEO of Laredo Energy. Other members of the Laredo Energy senior management team include:
- Doug Fogle, vice president - engineering
- Jerry Holditch, vice president - geology
- Steve Jaques, vice president - technology
- Ken Cravens, vice president - land
- Scott Stevenson, vice president - acquisitions
- Robert Swanson, vice president - finance and 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 Energ 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.
