Lime Rock adds to energy portfolio

Energy specialist Lime Rock Partners has announced a brace of deals, one in the UK and another in the US, taking the total investment from its current fund to $100m.

Lime Rock Partners, the Connecticut-based energy investor which closed its Lime Rock Partners II fund on $320 million (€254 million) in late 2002, has announced two investments in privately owned energy companies.


In the UK, the firm has backed Caledus Limited, an Aberdeen, Scotland-based oil and gas service company. The size of the Caledus investment was not disclosed.


Caledus was set up in April last year to develop and provide drilling and completions products and services. Its primary focus is the development of a technique to reduce the cost of well construction by more than 50 percent.


“Oilfield technology products that reduce the cost of drilling and production have been a highly successful area for Lime Rock in the past, and they remain a core focus for us,” said Lawrence Ross, managing director and head of Lime Rock’s Aberdeen office.


Lime Rock also disclosed a $16.5 million investment in US Exploration Holdings, a Montana-based independent energy company engaged in oil and gas development, production, and property acquisitions in the Rocky Mountains.


Since closing on $320 million for its second energy-focused private equity fund in October 2002, Lime Rock has invested approximately $100 million in eight companies.  Other investments include Canadian mud motor manufacturer NQL Drilling Tools, Rocky Mountain drilling contractor Patriot Drilling, and UWG Group Limited, a UK-based oil service company.