SunTerra Oil and Gas Company News

HM Capital Partners Invests In SunTerra Resources

Terms of the transaction were not disclosed.

Article By Steve Toon Published Mar 9, 2009

Dallas private-equity firm HM Capital Partners LLC has invested in Houston-based SunTerra Resources LLC, a newly formed E&P company focusing on underbalanced horizontal drilling on acreage with proven producing reserves. Terms of the transaction were not disclosed.

SunTerra plans to drill on acreage currently controlled by other HM Capital portfolio companies, including BlackBrush Oil & Gas and TriDimension Energy.

The SunTerra management team includes chief executive Jim Hughes; Bob Cuthbertson, vice president, engineering; and Rodney Bray, chief financial officer. The management team is investing alongside HM Capital in the transaction.

Rodman & Renshaw LLC was advisor to SunTerra.

HM Capital partner Edward Herring says, “We believe that the application of UBHD (underbalanced horizontal drilling) techniques in proven basins can significantly reduce our portfolio companies’ finding and development costs and enhance their well productivity. Given the continued volatility in the commodity markets, we feel SunTerra’s expertise will give us a competitive advantage in drilling wells with attractive return profiles. We are very pleased to get started with SunTerra’s experienced and proven management team to build the company’s value.”

SunTerra’s Hughes says, “The management team at SunTerra has devoted most of our careers to using underbalanced horizontal drilling as a completion technique to enhance financial returns, and we are now excited by the considerable opportunity to build a leading UBD company to serve independent producers that will benefit from our expertise.”