“Quantum Energy joins Tug Hill, ZaZa in oil and gas ventures”
Quantum Energy Partners, the Houston buyout firm led by Wil VanLoh, has made investments alongside two oil and gas companies recently totaling $467 million. Quantum said Aug. 21 it partnered with Tug Hill Inc. to acquire and develop conventional and unconventional oil and gas assets in North America with a $450 million equity commitment. Quantum also announced On Aug. 27 it said it would join forces with ZaZa Energy Corp. ZaZa will receive $17 million in cash and rights to receive Quantum’s interest in the next 15 East Texas wells. ZaZa, which is led by Todd Brooks, will assign Quantum 6,000 net acres in undeveloped leases within its East Texas joint venture, leaving it with 30,000 net acres in the JV and 10,000 net acres in its East Texas focus area. Closing on the ZaZa deal must clear ZaZa’s joint venture partner EOG Resources Inc. Faced with doubt about its ability to continue as a going concern, ZaZa secured a $7.5 million investment from Crede Capital Group LLC last month to fund its development in East Texas. Vinson & Elkins LLP counseled Quantum on the Tug Hill deal, including Keith Fullenweider, Creighton Smith, John Grand, Thomas Laughlin, Chris Colquitt, Robert Hughes and John Lynch. Thompson & Knight LLP’s Wesley Williams advised Tug Hill. Quantum’s general counsel is James Baird. Sidley Austin LLP’s Mark Metts and Julie Gremillion counseled ZaZa, whose in-house corporate counsel is Scott Gaille.