13th Mar 2014 10:04
LONDON (Alliance News) - Riverstone Energy Ltd Thursday said it has invested up to USD82 million in Fieldwood Energy LLC and up to USD83 million in Rock Oil Holdings LLC.
The energy investment vehicle, which listed in London in October 2013, and was promoted to the FTSE 250 in December, said it was investing up to a further USD82 million in Fieldwood, a company which was set up by Riverstone in 2012 as an oil and gas producer in the Gulf of Mexico.
The company said an initial capital call of roughly USD54 million will be paid to support Fieldwood's most recent acquisition of SandRidge Energy Inc's Gulf of Mexico and Gulf Coast business unit, adding an additional 57 million barrels of oil equivalent proved reserves to the company's operations.
Riverstone said the deal will bring its total ownership in Fieldwood to roughly 4%.
The company also said its parent company Riverstone Holdings LLC has agreed to an equity commitment of up to USD250 million for Rock Oil Holdings LLC, comprising up to USD167 million from Riverstone Global Energy and Power Fund V and up to USD83 million from Riverstone Energy Ltd.
Rock Oil previously built a substantial acreage in the highly prospective Eagle Ford Shale in the US, before selling it on, and Riverstone said Rock Oil will now apply this process again, looking to acquire acreage in areas such as the Eagle Ford Shale, the Utica Shale and the Permian Basin.
Riverstone Energy shares were down 2.1% to 900.50 pence Thursday.
By Tom McIvor; [email protected]; @TomMcIvor1
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