Quest Resource Corporation Announces Pricing of Public Offering

Quest Resource Corporation Announces Pricing of Public Offering

Quest Resource Corporation (NasdaqGM:QRCP) (“Quest”) announced today the pricing of a follow-on public offering of 8,800,000 shares of its common stock at a price of $10.25 per share. Quest has also granted the underwriters a 30-day over-allotment option to purchase up to an additional 1,320,000 shares of its common stock. The offering is expected to close on or about July 8, 2008. Quest expects to receive net proceeds from this offering of approximately $84.2 million (approximately $97 million if the underwriters exercise their over-allotment option in full).

Quest intends to use approximately $70 million of the net proceeds from this offering to fund a portion of the previously announced $140 million acquisition, subject to closing adjustments, of privately held PetroEdge Resources (WV) LLC (“PetroEdge”). The remainder of the purchase price will be paid with the proceeds from the sale to Quest Energy Partners, L.P. (NasdaqGM:QELP) of PetroEdge’s interest in wellbores and related assets associated with proved developed producing and proved developed non-producing reserves for $70 million, subject to closing adjustments. Quest intends to use the remaining portion of the net proceeds of the offering, plus the net proceeds from a $35 million term loan to refinance the company’s existing revolving credit facility, to pay fees and expenses related to the PetroEdge acquisition, and for general corporate purposes, including drilling and development activities. If the PetroEdge acquisition is not consummated after this offering, the proceeds of the offering will be used for general corporate purposes.

RBC Capital Markets and KeyBanc Capital Markets served as joint book-running managers for the offering. Johnson Rice & Company L.L.C., Stifel Nicolaus, Friedman Billings Ramsey, and Wells Fargo Securities acted as co-managers for the offering.

The offering is being made only by means of a prospectus and related prospectus supplement, which will be filed with the Securities and Exchange Commission. A copy of the prospectus and prospectus supplement relating to the offering may be obtained from the offices of: RBC Capital Markets Corporation, 3 World Financial Center, 200 Vesey Street, 8th Floor, New York, NY 10281, Attn: Equity Syndicate, Fax: (212) 428-6260, or KeyBanc Capital Markets Inc., Attn: Prospectus Delivery Department, 800 Superior Avenue, 17th Floor, Cleveland, Ohio 44114, Phone: (216) 563-2018.

This announcement is neither an offer to sell nor a solicitation of an offer to buy any of these securities and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offer, solicitation or sale is unlawful.

About Quest Resource Corporation

Quest Resource Corporation is an integrated E&P company that owns 100% of the general partner and a 57% limited partner interest in Quest Energy Partners, L.P. and 85% of the general partner and a 36% limited partner interest in Quest Midstream Partners, L.P. Quest Resource operates and controls Quest Energy Partners and Quest Midstream Partners through its ownership of their general partners. For more information, visit the Quest Resource website at

Quest Energy Partners, L.P. was formed by Quest Resource Corporation to acquire, exploit and develop natural gas and oil properties and to acquire, own, and operate related assets. The partnership owns more than 2,300 wells and is the largest producer of natural gas in the Cherokee Basin, which is located in southeast Kansas and northeast Oklahoma and holds a drilling inventory of nearly 2,100 locations. For more information, visit the Quest Energy Partners website at

Quest Midstream Partners, L.P. was formed by Quest Resource Corporation to acquire and develop transmission and gathering assets in the midstream natural gas and oil industry. The partnership owns approximately 2,000 miles of natural gas gathering pipelines and over 1,100 miles of interstate natural gas transmission pipelines in Oklahoma, Kansas, and Missouri. For more information, visit the Quest Midstream Partners website at

Company Contact:

Jack Collins Investor Relations Phone: (405) 702-7460


Source: Quest Resource Corp.

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