Private equity firm Quantum Energy Partners has formed Bluestem Energy with industry veteran Jack Hightower to mainly acquire oil and gas producing properties as well as engage in the exploitation and exploration of reserves in North America.

Bluestem expects to have up to $1 billion of available equity from Quantum, co-investors and its management team, Quantum said.

Hightower will be CEO of Bluestem. He and Quantum partnered to form Celero Energy Partners LP in early 2004, later selling the company to Whiting Petroleum Corp. in July 2005 for more than $800 million. Also, several of Quantum’s founders helped Hightower raise private equity backing in 1995 to found Titan Exploration Inc., a start-up exploration and production company. It later became Pure Resources Inc. and was ultimately acquired by the former Unocal Corp. in 2003 for $1.6 billion (see Daily GPI, Oct. 11, 2002).

“The access to deal flow, financial and deal creativity, technical and operating expertise and the tenacity of Hightower and his team set Bluestem apart from many of its peers. It is these qualities that were largely responsible for generating the superior returns we’ve realized the last two times we have backed Jack Hightower,” said Quantum CEO Wil VanLoh.

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