Advisory Research sells shares of Quest Resource ahead of Pinnacle merger

By Lisa Kerner

Charlotte, N.C., March 19 - Quest Resource Corp. investors led by Advisory Research, Inc. sold 249,400 shares of the company's stock on Monday priced at $6.40 per share.

The transactions were reported in a schedule 13D filed with the Securities and Exchange Commission.

Advisory Research beneficially owns 2,779,791 shares, or 11.9%, of the company's outstanding stock.

On Feb. 6, Quest announced an amended stock-for-stock merger agreement with Pinnacle Gas Resources, Inc.

It was previously reported that under the amended and restated merger agreement, Pinnacle stockholders will receive 0.5278 of a share of Quest common stock for each share of Pinnacle common stock they own. The original agreement called for Pinnacle stockholders to receive 0.6584 of a share of Quest.

The exchange ratio was reduced based on updated Pinnacle financial forecasts, including sensitivity analyses, by Quest, a prior news release said.

Quest's stockholders will own about 60.5% of Quest following the merger, while Pinnacle's stockholders will own the remaining 39.5%.

Pinnacle is an independent energy company based in Sheridan, Wyo.

Quest is a natural gas producer based in Oklahoma City.

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