Quest Resource Corporation (NASDAQ: QRCP), a fully integrated E&P company that owns the right to develop approximately 130,000 net acres in the Appalachian Basin of the northeastern United States, recently announced the resignation of Jerry Cash as chairman and chief executive officer of Quest Resource Corporation, Quest Energy Partners, L.P. and Quest Midstream Partners, L.P., effective immediately.

This resignation is the result of questionable transfer activity totaling approximately $10 million to an entity controlled by Mr. Cash. Immediately following the discovery, members of the three boards met in joint sessions and formed a Joint Special Committee comprised of representatives from each board to investigate the matter and consider the effects on the companies’ financial statements.

The board of directors for the three entities announced they have unanimously elected David Lawler as president of each individual business unit and have appointed him as a director of Quest Resource Corporation to fill the vacancy created by Cash’s resignation. Lawler has served as the chief operating officer of Quest Resource Corporation since May 2007 and has been a director of Quest Energy Partners since its initial public offering in November 2007.

Let us hear your thoughts below: