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CUSIP NO. 748349305 SCHEDULE 13D PAGE 2 OF 8 PAGES
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--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
ADVISORY RESEARCH, INC.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
DELAWARE
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7 SOLE VOTING POWER
-0-
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 2,530,391
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH -0-
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
2,530,391
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11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
2,530,391
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
[ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
10.8%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
IA
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS
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CUSIP NO. 748349305 SCHEDULE 13D PAGE 3 OF 8 PAGES
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1 NAME OF REPORTING PERSON
ADVISORY RESEARCH ENERGY FUND, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
ILLINOIS
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
-0-
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 981,985
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH -0-
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
981,985
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
981,985
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
[ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
4.2%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS
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CUSIP NO. 748349305 SCHEDULE 13D PAGE 4 OF 8 PAGES
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--------------------------------------------------------------------------------
1 NAME OF REPORTING PERSON
ADVISORY RESEARCH MICRO CAP VALUE FUND, L.P.
--------------------------------------------------------------------------------
2 CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP* (a) [x]
(b) [ ]
--------------------------------------------------------------------------------
3 SEC USE ONLY
--------------------------------------------------------------------------------
4 SOURCE OF FUNDS*
OO
--------------------------------------------------------------------------------
5 CHECK BOX IF DISCLOSURE OF LEGAL PROCEEDINGS IS REQUIRED PURSUANT
TO ITEMS 2(d) or 2(e) [ ]
--------------------------------------------------------------------------------
6 CITIZENSHIP OR PLACE OF ORGANIZATION
ILLINOIS
--------------------------------------------------------------------------------
7 SOLE VOTING POWER
-0-
----------------------------------------------------------
NUMBER OF 8 SHARED VOTING POWER
SHARES
BENEFICIALLY 1,333,829
OWNED BY ----------------------------------------------------------
EACH 9 SOLE DISPOSITIVE POWER
REPORTING
PERSON WITH -0-
----------------------------------------------------------
10 SHARED DISPOSITIVE POWER
1,333,829
--------------------------------------------------------------------------------
11 AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH PERSON
1,333,829
--------------------------------------------------------------------------------
12 CHECK IF THE AGGREGATE AMOUNT IN ROW (11) EXCLUDES
CERTAIN SHARES*
[ ]
--------------------------------------------------------------------------------
13 PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (11)
5.7%
--------------------------------------------------------------------------------
14 TYPE OF REPORTING PERSON*
PN
--------------------------------------------------------------------------------
* SEE INSTRUCTIONS
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CUSIP NO. 748349305 SCHEDULE 13D PAGE 5 OF 8 PAGES
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The Schedule 13D filed on January 18, 2008 by Advisory Research, Inc. ("ARI"),
a Delaware corporation, Advisory Research Micro Cap Value Fund, L.P. ("Advisory
Micro Cap"), an Illinois limited partnership, and Advisory Research Energy
Fund, L.P. ("Advisory Energy" and along with ARI and Advisory Micro Cap,
the "Reporting Persons"), an Illinois limited partnership, with respect to the
common stock, par value $0.001 per share (the "Common Stock") of Quest
Resource Corporation (the "Company"), a Nevada corporation, amended by
Amendment No. 1 to Schedule 13D filed on February 4, 2008 and Amendment No. 2
to Schedule 13D filed on February 29, 2008, is hereby amended by this
Amendment No. 3. Only those items hereby reported in this Amendment
No. 3 are amended and all other items remain unchanged.
ITEM 3. SOURCE AND AMOUNT OF FUNDS OR OTHER CONSIDERATION.
Item 3 of the Schedule 13D is hereby amended and restated as
follows:
Funds for the purchase of the Common Stock reported herein were derived from
available capital of the Advisory Micro Cap and Advisory Energy funds as well
as client funds of ARI. A total of approximately $20.6 million was paid to
acquire such Common Stock.
ITEM 4. PURPOSE OF TRANSACTION.
Item 4 of the Schedule 13D is hereby amended and restated as follows:
On March 4, 2008, the Company informed the Reporting Persons that it will
not waive the limitations contained in Section 78.416 of the Nevada
General Corporation Law.
The Reporting Persons intend to review their investment in the Company
on a continuing basis and have and will continue to engage in discussions
with management, the board of directors, other stockholders of the Company
and other relevant parties concerning the Pinnacle Transaction and the
business, operations, board composition, management, governance, strategy
and future plans of the Company. Depending on various factors including,
without limitation, the Company's financial position and strategic
direction, the outcome of the discussions and actions referenced above,
actions taken by the board of directors, price levels of the Common
Stock, other investment opportunities available to the Reporting
Persons, conditions in the securities market and general economic
and industry conditions, the Reporting Persons may in the future take
such actions with respect to their investment in the Company as they
deem appropriate including, without limitation, soliciting proxies
in opposition of the Pinnacle Transaction, purchasing additional
shares of Common Stock or selling some or all of their shares of
Common Stock, engaging in short selling of or any hedging or similar
transactions with respect to the Common Stock, acquiring the Company,
soliciting outside parties that may have an interest in acquiring the
Company for fair consideration, seeking representation on the Company's
board of directors and/or otherwise changing their intention with
respect to any and all matters referred to in Item 4 of Schedule 13D.
Except as set forth herein or as would occur upon completion of any
of the actions discussed herein, including in any Exhibits hereto,
the Reporting Persons have no present plan or proposal that would
relate to or result in any of the matters set forth in subparagraphs
(a)-(j) of Item 4 of Schedule 13D.
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CUSIP NO. 748349305 SCHEDULE 13D PAGE 6 OF 8 PAGES
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ITEM 5. INTEREST IN SECURITIES OF THE ISSUER.
Paragraphs (a), (b) and (c) of Item 5 of the Schedule 13D are
hereby amended and restated as follows:
(a) As of the close of business on March 14, 2008, ARI may be
deemed the beneficial owner of an aggregate of 2,530,391 shares of Common
Stock, constituting approximately 10.8% of the Common Stock outstanding.
Advisory Micro Cap may be deemed the beneficial owner of 1,333,829 shares of
Common Stock, constituting approximately 5.7% of the Common Stock outstanding.
Advisory Energy may be deemed the beneficial owner of 981,985 shares of Common
Stock, constituting approximately 4.2% of the Common Stock outstanding.
The aggregate percentage of shares of Common Stock beneficially owned
by the Reporting Persons is based upon 23,455,427 shares of Common Stock
outstanding, which is the total number of shares of Common Stock outstanding as
of March 4, 2008 as reported in the Company's Annual Report on Form 10-K
filed with the Securities and Exchange Commission on March 10, 2008.
(b) By virtue of investment management agreements with each of
Advisory Micro Cap, Advisory Energy, and other discretionary client funds, ARI
has the power to vote or direct the voting, and to dispose or direct the
disposition, of all of the 2,530,391 shares of Common Stock held by ARI.
Advisory Micro Cap has the power to vote or direct the voting, and to dispose
or direct the disposition of all of the 1,333,829 shares of Common Stock it
holds. Advisory Energy has the power to vote or direct the voting, and to
dispose or direct the disposition of all of the 981,985 shares of Common Stock
it holds. Accordingly, ARI is deemed to have shared voting and shared
dispositive power with respect to an aggregate of 2,530,391 shares of Common
Stock.
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CUSIP NO. 748349305 SCHEDULE 13D PAGE 7 OF 8 PAGES
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(c) Information concerning transactions in the shares of Common Stock
effected by the Reporting Persons since the most recent filing on Schedule 13D
on February 29, 2008 is set forth in Schedule A hereto and is incorporated
herein by reference. Unless otherwise indicated, all of such transactions were
effected in the open market.
SIGNATURES
After reasonable inquiry and to the best of his or its knowledge and
belief, the undersigned certifies that the information set forth in this
statement is true, complete and correct.
Dated: March 17, 2008
ADVISORY RESEARCH, INC.
By: /s/ Brien M. O'Brien
---------------------------
Name: Brien M. O'Brien
Title: Chairman & CEO
ADVISORY RESEARCH ENERGY FUND, L.P.
By: Advisory Research, Inc.,
General Partner
By: /s/ Brien M. O'Brien
---------------------------
Name: Brien M. O'Brien
Title: Chairman & CEO
ADVISORY RESEARCH MICRO CAP VALUE FUND, L.P.
By: Advisory Research, Inc.,
General Partner
By: /s/ Brien M. O'Brien
---------------------------
Name: Brien M. O'Brien
Title: Chairman & CEO
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CUSIP NO. 748349305 SCHEDULE 13D PAGE 8 OF 8 PAGES
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SCHEDULE B
TRANSACTIONS IN THE SHARES BY THE REPORTING PERSONS SINCE FEBRUARY 29, 2008.
ADVISORY RESEARCH, INC.
Trade Date Shared Purchased (Sold) Price Per Share ($)
----------- ------------------------ -------------------
03/14/08 19,980 6.350
ADVISORY MICRO CAP
Trade Date Shared Purchased (Sold) Price Per Share ($)
----------- ------------------------ -------------------
03/14/08 226,440 6.350
ADVISORY ENERGY
Trade Date Shared Purchased (Sold) Price Per Share ($)
----------- ------------------------ -------------------
03/14/08 86,580 6.350
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