Company HistoryCardinal River Energy Company was founded in 1987 as a small exploration and production company. In late 2006, the company formed a strategic partnership with several privately held Oklahoma City based energy companies. These companies consolidated their oil and gas interests into Cardinal River Energy I LP. Through its early years, the company focused its business strategy on being a low cost, non-operating working interest owner in a diverse portfolio of oil and gas assets. As the company continued to grow and began generating its own prospects, the company formed CRECO Operating, LLC as an operating affiliate to drill, manage and operate the company's internally generated prospects. Today, as a result of the general partner's selective acquisition and participation strategies, the Partnership now owns operated and non-operated working interests, royalty interests and overriding royalty interests in over 1000 wells and properties located in several states including Oklahoma, Kansas, Arkansas, Texas, New Mexico, Mississippi, Illinois and Louisiana.
In early 2016, a consortium of five national banks retained an affiliate of Cardinal River Energy to provide independent analysis and advice concerning one of the bank group's oil and gas borrowers that was facing financial distress. The borrower subsequently filed for bankruptcy protection. During the bankruptcy proceeding, Cardinal River continued to provide analyses and advisory services, while also acting as an advocate for the bank group. This eventually led to the formation of River Rock Energy Company, which was formed to assist the banks in making a successful credit bid for substantially all of the borrower's assets. Under a collaborative arrangement with the bank group, River Rock Energy was assigned over 2,500 producing wells, associated leases, and a multi-state gas gathering and processing system. River Rock Operating, LLC operates the wells and the gathering system. Both River Rock Energy and River Rock Operating are thus the culmination of the strategic advice and assistance provided by Cardinal River to the banks.
Cardinal River continues to provide management services relating to the foregoing assets, and on a selective basis continues to provide consulting and management services to lenders who are dealing with troubled loans and distressed assets. As a part of such arrangments, Cardinal River acts as an advocate for the banks, and if desirable considers longer term asset ownership and operating services under mutually acceptable agreements with lenders.