WHAT'S NEW AT ACP

December 1, 2005

AMMONITE ADVISES CYMRAEC RESOURCES INC.
IN $42 MILLION PRIVATE EQUITY FINANCING

Ammonite Capital Partners, LP is pleased to report that Cymraec Resources, Inc. has closed its $42 million private equity financing to fund the company’s Texas and Louisiana Gulf Coast exploration program. Investors included: ARC Energy Venture Fund 4: Cadent Energy Partners I, LP; Energy Special Situations Fund 1; and PRBJ, Inc.     

Since its formation in 2000, Cymraec has operated as a prospect generating team for a consortium of small private and public companies that heretofore funded the company exploration activities. Ammonite was engaged in January 2005 to advise Cymraec Exploration, the predecessor to Cymraec Resources, in regard to developing and executing a business plan whereby Cymraec could buy out certain of its joint venture partners in its Texas exploration program; finance the Louisiana exploration program; make acquisitions; and become an operator.

Ammonite worked with Cymraec in developing a strategic business plan, building a risk adjusted economic model for 82 exploratory prospects in progress, recommending a private equity funding strategy, and in preparing an information memorandum. In July, Ammonite began the process of introducing Cymraec to a select group of sophisticated institutional private equity petroleum investors. The financing presented significant challenges. These included: replacement of the prior operator for the Cymraec joint venture in Texas; acquisition of the working interest of a joint venture partner in bankruptcy; settlement of a lawsuit with a partner; securing bridge loans to meet certain capital commitments prior to the equity closing; building the Cymraec management team to include a CFO and vice presidents of land and engineering; and solving significant data license and other issues for the principals of Cymraec and the investors.

Ammonite introduced ARC Financial to Cymraec as the lead investor. ARC is the oldest and largest petroleum private equity investment fund in Canada. Cymraec is their first USA investment. ARC asked Ammonite to identify an experienced American private equity firm to be co-lead investor. We brought in Cadent Energy, whose principals had previously worked for First Reserve and RBC Capital Partners. Through the perseverance and patience of Cymraec and the investors; everyone’s willingness to compromise on some very difficult issues; the nimbleness of the Cymraec founders; and the excellent legal counsel of Vinson & Elkins, who Ammonite brought in to represent Cymraec, and Thompson & Knight, who represented the investors, all hurdles were finally overcome; and in late October, the financing was closed.

On November 16th, Ammonite Capital Partners hosted a post-closing celebratory dinner at the Coronado Club in Houston. Scenes from that very enjoyable dinner are reproduced below. The wines served included Paul Hobbs Dinner Vineyard Chardonnay 2001 and Paul Hobbs Cabernet Sauvignon 2001.

 

From left to right - Mike Looney, Cymraec CEO; Kim Dollens, Cymraec Vice President Engineering; Dick Gessinger, formerly Managing Director of Ammonite; and Mark Kelly, Vinson & Elkins

From left to right – Andy Evans, ARC Financial; Kim Dollens, Cymraec VP Engineering; Michael Blaney, Vinson & Elkins; John Wilder, Cymraec VP Land;Chuck Boettcher, Thompson & Knight; Mike Looney, Cymraec CEO; and David Coppe, Cadent Energy Partners.

From left to right – Greg Holloway, Thompson & Knight; Alex Bell, Cadent Energy Partners; Steve Zebo, Cymraec VP Exploration; Randy Spaur, Cymraec CFO; Dick Gessinger, ex-Ammonite; (obscured) Mike Graham, Cymraec SVP; and Paul McDermott, Managing Partner, Cadent Energy Partners.

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July 10, 2005

GREGORY J. MORONEY
JOINS AMMONITE FINANCE TEAM

Ammonite Capital Partners is pleased to announce the Gregory J. Moroney has joined the firm as Senior Consultant-Corporate Finance.

After working 25 years in energy finance for Citicorp and Deutsche Bank, Greg Moroney brings tremendous experience and expertise in energy corporate finance to Ammonite. He provides his clients with extensive experience in raising capital for acquisitions and project developments from private sources as well as public capital markets, multilateral agencies (IFC, OPIC) and export credit agencies. While working at Deutsche Bank Securities from 1993 to 2002, Greg established and supervised a $250 million mezzanine finance program for the junior oil and gas sector. He also led and supervised teams that raised more than $10 billion of funding for upstream, downstream and pipeline projects throughout North and South America. Several of the transactions were awarded "Deal of the Year" by industry magazines including Project Finance International and Infrastructure Finance.

Mr. Moroney worked for Citibank, N.A. and affiliates from 1975 to 1993 in New York, Toronto and Calgary. During this period he was designated both a "Senior Banker" and a "Senior Credit Officer".

Greg Moroney is a Director of Breitburn Energy Company LP (Los Angeles), a private company controlled by Provident Energy Trust (Calgary). He has dual citizenship (USA and Canada) and is a member of the Energy Forum at the Stern School/NYU. In addition to holding a BA from Yale University, Mr. Moroney has attended numerous professional training programs covering Advanced Financial Accounting, Petroleum Engineering, M&A Evaluations and Transformational Leadership.

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March 22, 2005

DICK GESSINGER JOINS GE CAPITAL ENERGY FINANCIAL SERVICES

New Canaan, Connecticut - Ammonite Capital Partners, LP announced the departure of P. Richard “Dick” Gessinger from the firm.  G. Warfield “Skip” Hobbs, Managing Director and co-founder of the firm will continue to manage the affairs of ACP. 

“As a co-founder of ACP, we thank Dick for his contributions in building the firm into a successful boutique energy investment advisor, advising clients on capital formation and sourcing private equity for upstream oil and gas exploration,” Mr. Hobbs said.  “We wish Dick well in his new endeavors.”

Mr. Gessinger joined GE Commercial Finance Energy Financial Services in its Oil and Gas unit as a Vice President.  Based in Stamford, Conn., he will originate partnership investments with independent private and public oil and gas producers to acquire or monetize proven reserves. 

About GE Commercial Finance Energy Financial Services

GE Commercial Finance Energy Financial Services, based in Stamford, Connecticut, invests about $3 billion annually in the world’s most capital-intensive industry, energy. With more than $11 billion in assets under management, GE Commercial Finance Energy Financial Services offers structured equity, leveraged leasing, partnerships, project finance and broad-based commercial finance to the global energy industry from wellhead to wall socket. For more information, visit www.geenergyfinancialservices.com.

About GE Commercial Finance

GE Commercial Finance, which offers businesses around the globe an array of financial products and services, has assets of over $230 billion and is headquartered in Stamford, Connecticut. General Electric (NYSE: GE) is a diversified technology, media and financial services company dedicated to creating products that make life better. For more information, visit the company's website at www.ge.com.

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March 18, 2005

ACP COMPLETES ROSETTA EXPLORATION ADVISORY

Rosetta Exploration, Inc., a Calgary-based exploration company listed on the TSX Venture Exchange (Symbol: RSA), announced on March 15th that it has raised C$6,562,500 through a private placement of common shares to US institutional investors.  Ammonite Capital Partners, LP was Rosetta’s exclusive financial advisor during its C$35 million capital campaign.

            Ammonite Capital Partners, LP is pleased to announce the successful completion of its financial advisory engagement by Rosetta Exploration, Inc. In December 2003, Rosetta retained ACP to advise the company on various capital raising alternatives. Rosetta had, to that time, raised C$40 million through the flow through capital markets in Canada, private equity and investment by management.  Initial proceeds were carefully invested to build a diverse portfolio of new play types and conventional exploration opportunities. After two early exploration disappointments, management was interested in sourcing new capital to advance their exploration program.

             In securing our assignment, ACP convinced management to consider an all- encompassing financial plan that would ensure testing all of the Company’s ideas.  The Company whole-heartedly embraces exploration as the most efficient tool for finding new hydrocarbon pools.  ACP recommended pursuing a probabilistic financial analysis to manage risk and allocate capital.  After developing a proprietary financial model for the Company, management was able to evaluate the entire resource base from a bottom-up risk-adjusted point of view.  ACP recommended and management accepted that a large capital raise was required so that any one drilling failure would not condemn the entire portfolio, leaving the remaining opportunities capital starved.

            A two-point plan was conceived that would move along parallel paths. First, a strategic partner would be secured to participate across the board in Rosetta’s prospects on a promoted basis. Second, the Canadian and US capital markets would be tested for sourcing exploration capital.  The Canadian flow through market, although active, was broad, but not deep.  Therefore, the need to tap the US private equity markets became the lynch pin to concluding a successful capital campaign.

            The strategic partner fell into place first based on an existing relationship between the Company and Anadarko Petroleum. Management put forth a compelling economic case for Rosetta’s exploration portfolio potential based on ACP’s economic model. Exploration cash and commitments of C$22 million was agreed upon, and Anadarko has participated on a promoted basis in all five exploration wells operated by Rosetta since closing.

            By year-end 2004, the flow through Canadian market was exhibiting strength in the midst of record high commodity prices, and a continuance of tax treatment preference associated with such offerings.  Early in December, Rosetta announced a C$5million offering which was subsequently increased to C$6.5 million based on strong demand.

            The Anadarko and flow through capital provided sufficient liquidity to continue the Company’s Exploration plan through March 2005.  Based on some early drilling success, Rosetta was able to downsize its incremental capital requirement to between C$5-10 million, at which point, the projected risk adjusted cash flow from operations was deemed to be sufficient to likely permit the Company to test its entire portfolio.  Through this period ACP had introduced management to the US private equity markets. During the first quarter of 2005, the exploration story had unfolded to the point where two US institutions purchased common stock funding C$6.5 million to conclude the capital raising effort.

            The offering was price negotiated at C$0.75/share; right on top of the December flow through offering which was tax advantaged. The investors bought above the C$0.67/share closing market price the day before the announcement on March 10th.  However since the announcement, and prior to the close, they have been rewarded by a positive market reaction and large volume.  The stock closed at C$0.83/share on Friday, March 18th.

            Ammonite’s capital market assessment from our Rosetta engagement is that exploration capital can be sourced for independents with credible management teams, and a defined competitive advantage. The capital plan must be tailor made to fit the issuer’s asset base and business plan. As a firm that has a tremendous depth in both petroleum exploration science and finance, Ammonite Capital Partners is a unique adviser, with the capability of both structuring financial solutions, and sourcing private equity for exploration independents in need of drilling capital.

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  April 21, 2004   

Hobbs Presents Paper at AAPG Convention in Dallas  On Preparing An E&P Company Business Plan

On April 21st Ammonite Managing Partner Skip Hobbs presented at paper at the AAPG Annual Convention in Dallas titled “Preparing a Business Plan for a Petroleum E&P Venture: A Critical Step In Launching A Successful Enterprise.  The paper was well-received, and many of the participants have requested copies of the PowerPoint presentation.  Ammonite Resources’ sister company, Ammonite Capital Partners, works closely with its clients in preparing business plans and corporate economic models.

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  April 3, 2004

 HAVING FUN!

One of the guiding principals of Ammonite Capital Partners is that we must enjoy doing what we do, and develop lasting relationships with our clients that go beyond just “making money”. We can and do work very hard, but all work and no play makes for a very dull life style! 

 Since December, ACP has been working closely with Rosetta Exploration, Inc., of Calgary, Alberta to fine-tune the company’s business model and advise Rosetta on the structure for a new financing. Rosetta management shares our love of the great outdoors and enjoying life after a hard week’s work. On Saturday, April 3rd, Ammonite’s Managing Director Skip Hobbs and Calgary-based Senior Consultant Susan Eaton, together with Rosetta’s president and COO Glenn Gradeen and VP of Operations Greg Kondro, had a fabulous day of Spring skiing at Lake Louise in Banff National Park. Some of the photographs from our outing are presented below.  

      

Ammonite's Susan Eaton, Rosetta COO Glenn Gradeen, and Skip Hobbs on the summit of the Lake Louise ski area.

Rosetta VP Operations Greg Kondro (he was definitely not thinking about the AFE and permitting process for the company's next sour gas well).

The downhill competition was stiff...but Skip took a shortcut.

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February 9, 2004   

AMMONITE CAPITAL PARTNERS HOSTS DINNER AT CORONADO CLUB IN HOUSTON DURING NAPE CONFERENCE  

Gryphon Exploration's EVP Ron Krenzke begins his presentation as Oil & Gas Investor Editor Lesli Haines listens attentively.  

    Houston's exclusive Coronado Club was the venue on February 4th for an intimate Ammonite Capital Partners, LP reception and dinner for 28 friends and clients following the Icebreaker for the North American Prospect Expo ("NAPE"). Ammonite Capital Partners continued a tradition established two years ago by Ammonite Resources of organizing a fun social event with good wine, excellent food and cheer, at which the firm also presents an interesting and timely technical talk. The PowerPoint presentations are informative for both professional explorationist and industry financiers alike. The technical theme for the February dinner was "Utilizing Leading Edge Seismic Technologies to Reduce Risk in Petroleum Exploration and Development". There were three mini-talks between the courses of the gourmet dinner.

    Ammonite Resources Chief Geophysical Advisor Kevin Hill gave a presentation that showed how certain seismic attributes can be manipulated to identify hydrocarbon charged reservoirs in carbonates. The technology was applied to a 3D survey over a Smackover Formation discovery in Arkansas to successfully direct a horizontal development borehole from one porosity pod to another – like stringing pearls, in real time!

    Ammonite client Gryphon Exploration is racking up an outstanding track record of discoveries on the Gulf of Mexico Shelf. One of the factors which is contributing to this success is a regional pre-stack time migrated ("PSTM") 3D seismic database. Ron Krenzke, Gryphon’s Executive Vice President Exploration, explained what PSTM is, and showed a case study of how the processing enables explorationists to image hydrocarbon charged reservoirs where previous interpretation of the same 3D data showed nothing!

     The third "mini-talk" was by Ammonite’s Calgary-based client Rosetta Exploration. Chairman Jim Malcolm discussed how Rosetta is using a proprietary noise attenuation technology to enhance the clarity of seismic data to better define hard to image combination stratigraphic/structural traps in the Western Canadian Sedimentary Basin.

    Wines served with dinner included Iron Horse Viognier 2001from California, Rosemont GSM Syrah 1999 from Australia, and a Trimback Gewurstraminer from Germany with dessert. A great time was had by all!

     

Ammonite friends, clients and consultants at the Coronado Club dinner on February 4, 2004  

     

Rosetta Exploration Inc. Chairman and CEO Jim Malcolm begins a presentation on his firm's proprietary process for seismic noise reduction.  

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December 2003

AMMONITE VISITS DRILLING OPERATIONS OF CLIENT ROSETTA EXPLORATION, INC. IN ALBERTA


       In early December, Ammonite Capital Partners Managing Directors Dick Gessinger and Skip Hobbs visited the Crossfield 9-22 well drilling operations of client Rosetta Exploration Inc. in West-Central Alberta.  This was a deep sour gas Swan Hill Formation test operated by Rosetta with partner Petrocanada. Because of the potential danger associated with hydrogen sulfide gas, safety procedures at the wellsite and for the protection of the local community are truly comprehensive. Ammonite was particularly impressed by the professionalism of the drilling crew, and Rosetta's community contingency planning and safety program implementation. Because of their outstanding community relations program and safety plan, Rosetta was able to permit the sour gas well in record time, and without the usual lengthy and contentious public hearing process.



          Dick Gessinger at the Crossfield 9-22 Wellsite"



      

"Rosetta VP Operations Greg Kondro shows Ammonite's Dick Gessinger and Skip Hobbs the well blowout preventer in the rig cellar."