Quantum Capital Group (Quantum) and Caerus Oil and Gas (Caerus) have closed a transaction under which Quantum, via two separate portfolio companies, has acquired Caerus’ oil and gas operations for approximately US$1.8 billion, including the assumption of asset-backed securities and other liabilities.
QB Energy, a newly formed Quantum portfolio company, is acquiring the producing upstream assets, gathering and compression midstream assets, approximately 600,000 acres (242,811 ha), and all other assets owned by Caerus in the Piceance Basin.
KODA Resources (KODA), an existing Quantum portfolio company, is acquiring the producing upstream assets, gathering and compression midstream assets, approximately 160,000 acres (64,749 ha), and all other assets owned by Caerus in the Uinta Basin.
“As an active private energy investor, we recognize the important role of expanding access to clean and reliable energy in key markets across the United States,” said Tom Field, partner at Quantum. “This transaction represents a unique opportunity for Quantum to invest in substantial natural gas production alongside large, contiguous acreage positions containing sizable hydrocarbon resources with significant value creation potential. We believe that KODA and QB Energy are well positioned to steward the next phase of development and operation of the assets to serve responsibly natural gas demand centers in the western US. while generating attractive returns for our investors.”
“Natural gas plays an increasingly important role in our energy grid, offering a rare combination of sustainability, reliability, and affordability that can allow us to meet rising power needs,” said Chuck Davidson, partner at Quantum. “The Caerus assets provide access to some of the largest natural gas resources in the western markets, which have experienced repeated, localized energy shortages in recent years. Alongside our partners at KODA and QB Energy, we expect to continue optimizing these operations, driving significant value for our investors while helping bring reliable, affordable, low-carbon energy to more end users.”
“The Piceance assets represent the largest single asset base atop the second largest gas resource in the continental US,” said Roger Biemans, CEO of QB Energy. “QB Energy is acquiring a shallow-decline production base with several decades of repeatable drilling inventory and intends to employ a number of Caerus’ existing capable workforce to ensure continuity in both the field and local communities.”
