Riverstone Energy Limited Sale of Three Rivers III (2017F)
February 19 2018 - 1:00AM
UK Regulatory
TIDMRSE
RNS Number : 2017F
Riverstone Energy Limited
17 February 2018
- THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION -
Riverstone Energy Limited
17 February 2018
Riverstone Energy Limited Announces Sale of Three Rivers III
London, UK (17 February 2018). Riverstone Holdings LLC
("Riverstone"), the Manager of Riverstone Energy Limited ("REL" or
the "Company"), has announced that it has agreed to the sale of
100% of the assets in Three Rivers Operating Company III LLC
("Three Rivers III"), an Austin-based oil and gas company focused
on the Permian Basin.
Riverstone formed Three Rivers III in April 2015 to pursue
acquisition, exploitation and development opportunities in the
Permian Basin of West Texas and Southeast New Mexico, following
successful partnerships with the same team in Three Rivers
Operating Company I and Three Rivers Operating Company II. Shortly
after formation, Three Rivers III assembled a significant
contiguous acreage position in the core of the Delaware Basin
through several acquisitions in 2015 and 2016. The company
subsequently leased offset acreage, developed midstream oil and gas
infrastructure and initiated a drilling programme to delineate its
approximately 57,000 net acre position. Three Rivers III was
producing in excess of 10,000 boepd net as of January 2018.
Today, Riverstone announces an agreement has been reached to
sell Three Rivers III's upstream assets for an undisclosed cash
consideration. This follows an acreage gas dedication agreement
executed in December for additional undisclosed consideration.
Upon closing of these transactions, REL will realise gross cash
proceeds of approximately $205 million, representing a gross
multiple of invested capital of 2.2x on the Company's investment of
$94 million and a gross IRR of 49%. This represents a gross profit
of $111 million, which will be subject to taxes and a performance
fee upon closing of the sale, which is expected to occur in April
2018 and is subject to customary closing conditions.
The Company will release its 2017 annual results, including the
updated NAV as at 31 December 2017, on 28 February 2018.
About Riverstone Energy Limited
REL is a closed-ended investment company that invests
exclusively in the global energy industry, with a particular focus
on the exploration & production and midstream sectors. REL aims
to capitalise on the opportunities presented by Riverstone's energy
investment platform. REL is a member of the FTSE 250 and its
ordinary shares are listed on the London Stock Exchange, trading
under the symbol RSE. REL has 14 active investments spanning
conventional and unconventional oil and gas activities in the
Continental U.S., Western Canada, Gulf of Mexico, Mexico and
credit.
For further details, see www.RiverstoneREL.com
Neither the contents of Riverstone Energy Limited's website nor
the contents of any website accessible from hyperlinks on the
websites (or any other website) is incorporated into, or forms part
of, this announcement.
Media Contacts:
Riverstone Energy Limited:
Brian Potskowski
Natasha Fowlie
+44 203 206 6300
This information is provided by RNS
The company news service from the London Stock Exchange
END
DISLLFFLFSIDLIT
(END) Dow Jones Newswires
February 19, 2018 02:00 ET (07:00 GMT)
Riverstone Energy (LSE:RSE)
Historical Stock Chart
From Apr 2024 to May 2024
Riverstone Energy (LSE:RSE)
Historical Stock Chart
From May 2023 to May 2024