| Location |  |
|---|---|
| Date of investment | Oct 1999 |
| Activity | Onshore oil and gas production and utilities |
| Investment Size | €20.5m |
| Type/stage | MBI / Roll-out |
| Revenues | €28.0m (2004) |
| Transaction Size | €61.5m |
| Milestone Board Members | |
| Date of realisation | May 2004 |
| Further information |  |
The Business
Star Energy planned to develop an onshore oil and gas utility business through the acquisition of a small number of complementary businesses. The focus was on companies with producing assets which had the potential to develop annuity streams through gas storage and electricity production.
The Management
The chief executive, Roland Wessel, was a serial entrepreneur with a background in drilling services who had used his own time and money to develop the strategic plan. His business and strategic skills were leveraged by a close knit management team of Colin Judd (Finance Director), Melvyn Horgan (Operations & Reserves), Michael Garland (Acquisitions and Corporate Development) and Adrian Fernando (New Business Director).
Strategic Development
Critical mass was achieved through the acquisition of Soco International's UK onshore assets in the Weald Basin for £7m and Roc Oil Company's East Midlands assets for £22m. The business exploited these assets successfully, developing plans to create a number of gas storage schemes. The first scheme, Humbley Grove in Hampshire, required considerable capital to develop and so the company was floated on AIM in 2004 at a market capitalisation of over €100 million. Milestone exited part of its investment at this time before exiting fully shortly thereafter through a sale to the ultimate trade buyer, generating a total return of 3.6 times our original investment.