OilVoice - Mountain Hawk Energy Acquires 50% Share of CBM Field from Marathon

Mountain Hawk Energy Acquires 50% Share of CBM Field from Marathon

Tuesday, September 07, 2010

Mountain Hawk Energy, LLC, a company focused on the acquisition, exploration and development of coal bed methane in Wyoming's Powder River Basin, announces the acquisition of a 50% share of the Clabaugh coal bed gas field from Marathon Oil Corporation. Mountain Hawk Energy is wholly-owned indirectly by Yorkville Advisors' managed fund, YA Global Investments, L.P.

With the acquisition and operational changes, Mountain Hawk expects to triple the daily production from 750,000 to 2.0 - 3.0 million cubic feet a day, and has doubled its' total proved gas reserves, from 8.8 billion cubic feet to 16.6 billion cubic feet in Clabaugh.

Yorkville Advisors was instrumental in managing the acquisition from start to finish. Les Garrett, Managing Director, Yorkville Advisors and COO, Mountain Hawk Energy, and Troy Rillo Senior Director, Yorkville Advisors performed the due diligence, recommended the acquisition, negotiated the price and consummated the transaction.

Mr. Garrett notes, 'The Clabaugh acquisition is a major milestone for Mountain Hawk Energy, and a significant event for its growth trajectory. Clabaugh has coal seams rich in natural gas and this significantly boosts Mountain Hawk Energy's reserves. Following this acquisition, we will continue to look at careful and measured growth for the company through low cost, value added acquisition.'

Mr. Rillo, says, 'In the wake of the 2008 credit crisis, Yorkville has seen the potential to create longer term value for its investor base though the management of certain private assets, such as Mountain Hawk. Although few in number, Yorkville is using its in-house business expertise to affect a turnaround in these assets where it believes there are good prospects of achieving an exit, as appropriate.'

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