12th Aug 2014 10:51
LONDON (Alliance News) - Riverstone Energy Ltd Tuesday said it is investing, with others, up to CAD675 million a newly-formed, Calgary-based oil and gas company caled Canadian Non-Operated Resources LP (CNOR).
The closed-ended investment company, which invests exclusively in the global energy industry, said the equity investment of around CAD675 million in CNOR, includes a CAD300 million investment from funds managed by private equity firm Riverstone Holdings, with the balance from an unnamed Middle Eastern sovereign wealth fund, Grafton Asset Management Inc and CNOR's management team.
The Riverstone commitment comprises up to CAD200 million from Riverstone Global Energy and Power Fund V, and up to CAD100 million from Riverstone Energy Ltd.
CNOR is looking to pursue partnerships with top-tier operators to develop oil and gas assets in the Western Canadian sedimentary basin.
"The new company will seek to capitalise on a market environment in which there is an increasing demand for non-operating partner capital due to the vast and growing capital requirements inherent to full-scale development of unconventional resources," Riverstone Energy said in its statement.
CNOR will be led by Richard Grafton, the founder and chief executive officer of Grafton Asset Management, which is a Calgary-based oil and gas investment firm.
Riverstone Energy shares were flat before midday Tuesday at 915.00 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Riverstone Energy