News
CountryMark Acquires Assets of Core Minerals
CountryMark, an Indianapolis-based company, announced on May 10th
that it purchased the assets of Core Minerals, headquartered in
Evansville, Indiana. The purchase added oil exploration, drilling
and production to CountryMark’s portfolio.
“Securing American energy is
CountryMark’s top priority,” said company CEO and President Charlie
Smith. “The addition of these assets to the CountryMark business
structure is strategically aligned with all of the basic business
tenets that guide our organization. Combining the advantages of the
resources available within the Illinois Basin with the technological
and commercial infrastructure and expertise of CountryMark makes for
a strong, integrated business model that I believe will yield
positive returns for all CountryMark stakeholders, including our
owners, customers, employees and the communities in which we
operate.”
In the agreement, CountryMark purchased a predictable oil and
gas production base, a robust inventory of diversified development
projects, and a substantial portfolio of high quality conventional
and unconventional exploration opportunities. CountryMark will hire
50 employees to manage its exploration, drilling and production
business, bringing CountryMark’s total employment numbers to 400.
CountryMark is a farmer-owned
cooperative and is Indiana’s only American-owned oil refining and
marketing company. The CountryMark refinery is located in the
southwest Indiana town of Mt. Vernon, Indiana and was built in 1940.
CountryMark refines 26,500 barrels of crude oil per day and is the
largest buyer of crude oil in the Illinois Basin –
a
53,000 square mile depression
located underneath most of southern Illinois, western Indiana and
western Kentucky.
CountryMark entered the oil exploration and drilling business in
2008 as a partner with Pioneer Oil Company, an independent oil
producing corporation. CountryMark expanded its oil drilling efforts
in 2009 partnering with Core Minerals.
Matt Smorch, CountryMark Vice President of Strategic Planning, added
that investing in the Illinois Basin has been and will continue to
be strategic to the success of CountryMark’s refining operations.
“Our strategy is to invest in new exploration and
drilling technology, which will sustain oil production in the
region,” said Smorch.
Approximately 35,000 barrels of crude oil are produced
daily from the Illinois Basin. The basin is an extremely dependable,
secure supply of energy for Indiana and surrounding states. Oil
production is also a vital part of tri-state economics. CountryMark
alone purchases approximately $800 million worth of crude oil each
year from an estimated 40,000 oil lease owners.
Don Jones, President of Pioneer Oil Company, added,
“CountryMark’s decision to invest valuable financial
resources in the Illinois Basin will bring new oil drilling activity
to the basin. It’s positive for economic development for the
tri-state region.”
Tom Nichols, president of the Indiana Oil and Gas Association, was
pleased to see CountryMark reaffirm its commitment to the energy
resources native to Indiana, Illinois and Kentucky.
“The Illinois Basin is a very mature producing province,” said
Nichols. “Bringing a new investor to the region with a commitment to
advanced exploration, production, communication, and logistic
technologies will be positive for the Indiana oil and gas industry
as well as the economic development opportunities of southwest
Indiana.”
CountryMark CEO Charlie Smith added that he believes projects like
this, along with the drilling activity of all the other producers in
the area, are steps in the right direction for American energy
security.
The acquisition was supported by a strong team of
business partners dedicated to serving the interests of
CountryMark’s member-owners.
Wells Fargo Securities, LLC acted as CountryMark’s exclusive
financial advisor on the transaction. The supporting credit facility
was arranged by Wells Fargo Bank with participation by PNC Bank.
Indianapolis based Ice Miller, LLP served as legal counsel.
CountryMark fuels and lubricants are distributed in and
around the state of Indiana through a network of CountryMark member
cooperatives. In addition to delivered energy products, these
cooperatives operate 90 fuel stations in Indiana and surrounding
states. CountryMark is also recognized nationwide as a leader in the
distribution of biofuels such as biodiesel and ethanol.