21st Jan 2015 07:50
LONDON (Alliance News) - Riverstone Holdings LLC Wednesday said it is set to invest a total of CAD465 million in a newly formed oil and gas company with an investor group.
Riverstone and the investor group, NGP Energy Capital Management LLC will invest the total sum together in the Canadian based CanEra Inc. Of the total amount, CAD225 million is being invested by funds managed by Riverstone.
FTSE-250 listed Riverstone Energy Ltd, which is part of the same group as Riverstone Holdings, has committed to fund CAD75 million of Riverstone Holding's obligations to CanEra, it said in a statement.
No further details regarding the financial investment were released by the company.
This is the third deal signed between Riverstone and the management team at CanEra. Riverstone has previously made "successful partnerships" with CanEra management in CanEra Resources Inc and CanEra Energy Group Corp, said the company.
The new investment in CanEra Inc is being established to allow exposure to potential acquisition, exploitation and exploration of ore and gas deposits in the Western Canadian sedimentary basin, where the CanEra management team have had "considerable prior success", said Riverstone.
"Our significant equity commitment reflects the confidence that we continue to have in the CanEra team, as well as the opportunity set we see in the Western Canadian sedimentary basin," said Robert Tichio, a partner at Riverstone. "This investment also serves to highlight Riverstone's strategy of re-partnering with proven management teams that have differentiated industry expertise and deep, basin-focused operating experience."
By Joshua Warner; [email protected]; @JoshAlliance
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