Quantum Energy Partners Announces the Formation of HEQ Deepwater and the Acquisition of a 20% Working Interest in the Shenandoah development in the Deepwater Gulf of Mexico

Houston, Texas, UNITED STATES

HOUSTON, Aug. 30, 2021 (GLOBE NEWSWIRE) -- Quantum Energy Partners (“Quantum”), a leading provider of private equity capital to the global energy industry, and Houston Energy, one of the premier privately-held independent oil and gas companies in the Deepwater Gulf of Mexico, announce the formation of HEQ Deepwater (the “Company”) with more than $400 million of equity capital commitments from Quantum and management.

HEQ Deepwater will be led by CEO Ron Neal, a veteran of the Deepwater Gulf of Mexico, and supported by the Houston Energy senior leadership team. Houston Energy has a 30+ year track record of value creation, boasting an ~80% commercial success rate and the discovery of more than 900 MMboe of audited 2P reserves from internally generated Deepwater Gulf of Mexico exploration prospects. In addition, the Houston Energy team has been a participant in multiple facility scale development projects, such as the Delta House and Kings Quay complexes. The Company will look to leverage the strengths and experiences of Houston Energy and Quantum to build a diverse portfolio of development stage upstream and infrastructure assets in the Deepwater Gulf of Mexico. When evaluating potential opportunities, HEQ Deepwater will look to partner with premier operators who have a shared commitment to responsibly sourced hydrocarbons including ESG leadership and environmental stewardship.

On August 25, 2021, HEQ Deepwater closed on the acquisition of a 20% working interest in the Shenandoah development from an affiliate of Beacon Offshore Energy II LLC. This marks the second major acquisition for the Company. On the same day, the Shenandoah partners sanctioned the Shenandoah development, a significant milestone that is the culmination of years of hard work from the many strategic and financial partners involved.

Wil VanLoh, Founder and CEO of Quantum Energy Partners said, “Ron Neal and the Houston Energy team have been friends of Quantum for over 20 years, and we are excited to finally be in business together. The Deepwater Gulf of Mexico is one of the most important hydrocarbon provinces in the world, uniquely capable of delivering large production volumes with lower relative carbon intensity than any other region. Reductions in costs and project cycle times over the last few years have greatly improved the project economics of Shenandoah and other developments across this oil-rich basin. Quantum is looking forward to being a great partner to the many active operators in the Deepwater Gulf of Mexico.”

Ron Neal, CEO of HEQ Deepwater said, “Our partnership with Quantum provides HEQ Deepwater the opportunity to be a meaningful participant in the full-cycle development of world-class assets across the Deepwater Gulf of Mexico. Houston Energy will continue to generate high-quality exploration prospects for our industry partners, but HEQ Deepwater will allow us to be a multi-dimensional partner for operators throughout the development cycle of an asset. We would like to congratulate Scott Gutterman, Marc Hensel and the entire Beacon team, as well as Navitas Petroleum, for their accomplishment of sanctioning Shenandoah, and we look forward to working together to bring the project to first oil.”

Founded in 2021, HEQ Deepwater is a Houston-based company focused on the acquisition and exploitation of development stage upstream and infrastructure assets in the Deepwater Gulf of Mexico. HEQ Deepwater is led by industry veteran Ron Neal with support from the senior management team at Houston Energy. For more information, please visit www.houstonenergyinc.com or contact Heath Suire at (713) 650-8008.

Founded in 1998, Quantum Energy Partners is a leading global provider of private equity capital to the responsibly-sourced energy and energy transition & decarbonization sectors, having managed together with its affiliates more than $18 billion in equity commitments since inception. For more information on Quantum, please visit www.quantumep.com or contact Michael Dalton at (713) 452-2110.