Quantum Energy Partners (“Quantum”) is pleased to announce the formation of Rio Oil and Gas II, LLC (“Rio II” or the “Company”) together with its founders, Alan Clemens (“Clemens”), Stacey Cude (“Cude”), and the management team.
Rio Oil and Gas, LLC (Rio I) was formed in June 2013 and quickly acquired assets in the Permian Complex in both the Midland and Delaware Basins. Over the following twelve months, Rio I doubled its acreage footprint in the Midland Basin, improved operations, and grew net production to 3,000 Boepd. Rio I successfully monetized its position in the Permian Complex during September 2014 in a series of transactions totaling $585 MM.
Rio II will engage in the acquisition and development of oil and gas assets, focusing on both conventional and unconventional plays in select North American basins where the team has prior experience. Quantum and members of the management team have collectively made capital commitments in excess of $350 million to the Company.
The Rio II team remains unchanged from Rio I with the exception of Alan Clemens moving to become Chairman. Cude will serve as President and Chief Executive Officer. Cude was a founder of Rio I and served as President and Chief Operating Officer. Prior to Rio I, Cude was a senior member of Quantum’s technical team, serving as Chief of Engineering. Cude’s prior experience includes serving in various management positions with Anadarko Petroleum.
Wil VanLoh, President and CEO of Quantum, commented “Quantum is pleased to continue our partnership with Rio II as they launch their second company. Given this team’s experience, we are confident that their proven exploitation, execution, and capital allocation capabilities will enable them to deliver superior returns.”
Cude remarked, “Through the development of Rio I, we have come together as a team and I’m looking forward to building upon the success of Rio I. I am particularly pleased with our organizational ability to develop and understand geological frameworks, as well as, our ability to consolidate acreage positions and grind through difficult situations. Further, we are grateful to continue our strong partnership with Quantum in the formation of Rio II.”