Clifton Brown, Managing Partner

Stevens Gillespie, Managing Partner

BG Partners, LLC (BG) is involved in two related but different business activities:

• Acquisition, development and monetization of Appalachian Basin natural gas properties for its own account and on behalf of other investors.


• Strategic advisory, operating implementation and investment banking solutions for the energy industries.

Prior to forming BG in October 2000, Brown and Gillespie managed Equitable Resources’ exploration and production company valued at over $1 billion comprising 2.3 Tcf in natural gas reserves from 12,000 wells and three million acres of oil and gas leases. Gas production from the properties exceeded 250 million cubic feet per day. From 1994 to 1999, Brown and Gillespie were senior executives responsible for the growth of Statoil Energy’s exploration and production division. Statoil grew to become the largest owner of Appalachian Basin natural gas reserves by making more than 20 acquisitions and actively exploiting the acquired assets. Statoil had also become the most active operator (242 net wells drilled in 1999) with the lowest unit operating costs and highest net operating margin in this region.

In September 2001, the successful conclusion of an investment banking assignment on behalf of a limited partnership resulted in BG becoming the operator of certain natural gas interests in Pennsylvania and West Virginia. Since then, BG has consolidated its interests in these properties to an average 75% net revenue interest. Certain non-strategic wells have been sold while non-strategic undeveloped acreage has either been sold or farmed out with ongoing development in progress. Operationally, BG has conducted a series of production enhancement efforts including the installation of various water removal systems, wellhead compression and installed more accurate measurement. Swabbing, pipeline and production unit repair, improved well access, casing leak repair, revised production reporting and tubing installation have also been utilized to maximize production. Price enhancements beyond favorable market trends have resulted from favorable “btu” adjustments, new gas contracts and hedging activities. Five (5) West Virginia locations have now been drilled and several other wells have been completed in behind pipe zones. Another well is planned for early 2008 and certain behind pipe completions are being evaluated. Two Pennsylvania development joint ventures have been formed and an initial 17 well program was started in 2006. A moderate pace of drilling is expected annually as new acreage has been acquired since the initial ventures were formed.

BG is seeking additional properties to acquire and develop. The company is debt free, has equity funds to invest and is particularly interested in acquiring properties which BG can operate.

As a result of the partners’ diverse capabilities and executive management experience, BG will continue to provide “situational” consulting and investment banking services. These activities will focus on corporate strategy, investment due diligence, hedging advice, property valuations, property and corporate divestiture assistance and exploration joint venture formulation. However, BG is most interested in projects where a portion of the successful outcome will allow BG the opportunity for equity investment or performance oriented compensation.

Recent projects have involved strategic advice to a large energy independent associated with a major acquisition, a market valuation of a power plant to support county officials’ tax negotiations, a property valuation and strategic advice for a private Pennsylvania producer, strategic advisory services to an asphalt company and management advisory services to an engineering consulting firm.