11th Dec 2019 09:08
(Alliance News) - Riverstone Energy Ltd said Wednesday it has sold all of its offshore Gulf of Mexico assets owned by subsidiary Castex Energy 2014 LLC to Talos Energy Inc.
Riverstone also is offloading the undrilled primary term acreage and prospects of ILX Holdings III to Talos.
Riverstone owns 25% of Castex and 33% of ILX - having invested USD52 million and USD155 million in the two companies, respectively.
Riverstone didn't provide the price that Talos is paying. The deal is expected to be funded by the issuance of new Talos shares and existing Talos cash.
The disposal is subject to purchase price adjustments between the July 1, 2019 effective date and the closing date of the transaction, which is expected in the first quarter of 2020.
The Castex 2014 sale represents a full realization of Riverstone's investment, giving a 0.3 times gross multiple on invested capital. Riverstone said this is consistent with its third quarter valuation.
"The ILX III sale includes only exploration prospects that ILX III did not intend to drill within its current equity commitment and has no impact on Riverstone's third valuation of 1.2 times gross multiple on invested capital," the company added.
At September 30, the end of Riverstone's third quarter, the Castex 2014 had a gross unrealised value of USD15 million, while ILX III was valued at USD181 million.
Shares in Riverstone were down 1.9% in London on Wednesday at 420.00 pence each.
By Paul McGowan; [email protected]
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