Blood Tribe Announces Formation of New Tribal Energy Company in Partnership With Native American Resource Partners
Calgary, Alberta – April 4, 2011 – Kainaiwa Resources, Inc., the natural resource development company of the Blood Tribe of Alberta, Canada, announced today that it has formed Kainai Energy in partnership with Native American Resource Partners LLC (“NARP”). The formation of Kainai Energy strategically positions the Blood Tribe to fully capitalize on its oil & gas participation rights designated in two recent joint venture agreements with leading industry oil & gas operating companies and enables the Blood Tribe to secure both the expertise and investment capital necessary to evaluate and fund associated exploration and development costs. Importantly, NARP brings Kainai Energy technical and commercial oil & gas expertise along with a CDN $100 million capital commitment.The Blood Tribe has the largest tribal reserve in Canada, with over 350,000 acres of reserve land. In forming Kainai Energy, the Blood Tribe has retained all of its rights to royalty payments from development of its reserve land by industry partners Murphy Oil Company Ltd. (“Murphy”) and Bowood Energy Ltd. (“Bowood”), while securing needed capital to participate in its own resource development. The Tribe has also retained exclusive rights to reserve lands outside the existing joint ventures for future development. Kainai Energy will initially be focused on the existing joint venture areas in the emerging Alberta Bakken play as well as other potential oil and gas formations. Kainai Energy will also consider mid-stream and other related energy investment opportunities in these areas. Over time and with success, Kainai Energy could expand its focus both in and outside the Blood Tribe’s Reserve.
“The formation of Kainai Energy is a continuation of the Blood Tribe’s goal towards self-determination” as stated by Ron Thunder Chief. “We chose NARP because of its unique specialization of resource development in Indian Country and their successful history of working closely with Native American Tribes in the United States in creating co-partnered energy companies, thus making the Tribes an active partner in the commercial development of its natural resources.” Charlie Weasel Head, Chief of the Blood Tribe, stated, “The creation of Kainai Energy is a natural step for our Tribe. Just as our sister Tribes in the States have used their natural resource estates to create financial independence, we must become an active participant in the development of our resources in order to provide long-term financial stability to our Tribe and greater social and economic benefits to our Membership.”
John Jurrius, CEO and President of NARP noted, “The opportunity to work with the Blood Tribe is unique and furthers NARP’s mandate to invest exclusively with Native American Tribes and First Nations in co-partnered energy projects. It is an honor for us to have been selected by the Chief and Council of the Blood Tribe and we look forward to establishing a long and successful working relationship similar to those that we have already developed in the Unites States.”
Founded in 2008 by Quantum Energy Partners and John Jurrius, NARP is a natural resource development company with a specialization in working alongside Native American Tribes in the United States and First Nations of Canada. NARP has offices in Salt Lake City, Utah, Saskatoon, Saskatchewan and Calgary Alberta. The principals at NARP played a key role in helping build both the Southern and Northern Ute energy businesses into successful energy companies which have had a material positive benefit to the tribal members and communities of these respective tribes.
Quantum Energy Partners (“Quantum”) is a Houston, Texas-based private investment firm specializing in the energy industry. With over $5.7 billion in capital under management, Quantum has unique investment experience with Native American resource development partnerships via both NARP and previous investments. Quantum also has significant experience investing and operating in Canada.
Kainaiwa Resources, Inc. engaged Burstall Winger LLP as legal advisor and Meyers Norris Penny LLP as financial advisor. NARP engaged McCarthy Tetrault as legal advisor and KPMG as accounting advisor.
For more information, please contact
Native American Resource Partners LLC