• Houston-based Phoenix Exploration Co. has been formed with an initial financial commitment of $250 million from Carlyle/Riverstone Global Energy and Power III LP to explore and acquire on the Gulf Coast and in the Gulf of Mexico. Phoenix will be led by five former Gryphon Exploration Co. executives. William H. Flores, Phoenix chief executive, says, "Our goal is to build a dynamic and agile company focused on value creation. A proven team and business strategy with access to capital and a proven energy investor in Carlyle/Riverstone will enable us to efficiently execute our strategy of exploration and acquisitions...." David M. Leuschen, co-founder of Riverstone, says, "Bill Flores and his management team have extensive and distinguished careers in the oil and gas industry. Their track record is well established, as evidenced by their prior success at Gryphon, and they have a common vision of how to build value in today's competitive environment." Other Phoenix founders include Stephen E. Heitzman, chief operating officer; John A. Parker, senior vice president, exploration; Timothy S. Duncan, senior vice president, business development; and Keith O. Westmoreland, senior vice president, operations. Gryphon was formed in late 2000 and acquired in August 2005 by Australia's Woodside Energy for about $310 million. Gryphon had Warburg Pincus private-equity funding. • Natural Gas Partners, Irving, Texas, an affiliate of NGP Energy Capital Management, is starting a new E&P company with Houston-based Montierra Minerals & Production LP, to acquire, exploit and develop oil and gas royalty and mineral interests throughout North America. Natural Gas Partners has contributed certain oil and gas interests and cash totaling more than $200 million to Montierra. The company will be managed by Joseph A. Mills. Kenneth A. Hersh, chief executive of NGP Energy Capital and managing partner of Natural Gas Partners, says, "Montierra's business plan is a great fit with NGP's strategy of backing strong management teams that have compiled a great track record of building value in a focused sector within the industry." • Jefferies & Co. Inc., New York, a subsidiary of Jefferies Group Inc., (NYSE: JEF) has named Matthew L. Sperling a managing director in the firm's equity capital-markets group. He was formerly with UBS Investment Bank and Credit Suisse First Boston. • Tim Sullivant has joined Houston Energy Advisors LLC, the manager of an energy special-situations fund that was formed to invest in niche situations and facilitate transactions with other investors in the energy area. Sullivant was formerly with upstream asset- marketer Madison Energy Advisors. • Lime Rock Partners, Houston, has sold its stakes in U.S. Exploration, Natco Group and Roxar, as well as part of its investment in Hercules Offshore Inc. The four realizations, which occurred this year, totaled $417 million. The firm continues to hold and invest in 21 companies in the E&P, energy-service and oil-service sectors worldwide. • Which type of oil and gas producer will spend the most in 2006 on deepwater exploration and development: majors, independents or national oil companies (NOCs)? Audience members at an Offshore Technology Conference program in Houston answered 49% majors, 32% independents and 19% NOCs. Actually, the biggest spending will be by independents, said program moderator Sandeep Khurana, a project manager for subsea and facilities at JP Kenny Inc., Houston. Total spending will be some $18 billion, about half of that by independents. The figure is up from a total of $15 billion in 2005 and $11 billion in 2004, he added. • Research and Markets, Dublin, reports that despite the recent wave of consolidation, the U.S. oil and gas field-services and equipment industry is still fragmented and characterized by small specialty firms. More than half of these companies have fewer than five employees. Today, the sector consists of about 8,000 service companies with combined annual revenue of $25 billion. The average annual revenue per employee is about $115,000, according to the firm. Drilling provides about 35% of industry revenue, support services, 45%, and equipment manufacturing, 20%. • Shell E&P Co. reports it is ahead of schedule to restart production from its Mars tension leg platform in the Gulf of Mexico. Mars is the largest producing platform in the Gulf that was affected by Hurricane Katrina last year. It represents about 5% of Gulf of Mexico daily production. Marvin Odum, executive vice president and head of Shell E&P in North and South America, says "The Mars platform recovery and deepwater pipeline repairs were among the most technologically complex operations in the world, and our people were up to the task, completing the work safely and ahead of schedule." Production was to recommence in May.