Riverstone Energy Limited Sale of Rock Oil Holdings LLC to SM Energy Company (5500G)
08 August 2016 - 9:10PM
UK Regulatory
TIDMRSE
RNS Number : 5500G
Riverstone Energy Limited
08 August 2016
- THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION -
Riverstone Energy Limited
08 August 2016
Riverstone Energy Limited Announces Sale of Rock Oil Holdings
LLC to SM Energy Company
London, UK (08 August 2016). 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 membership interests in Rock Oil Holdings LLC ("Rock
Oil"), a Denver- and Houston-based oil and gas company focused on
the Permian Basin, to SM Energy Company (NYSE: SM), a US-based
E&P company.
Rock Oil was formed in March 2014 with the strategy of applying
Rock Oil's land and technical expertise to the acquisition and
development of assets in top-tier North American plays. Since
formation, Rock Oil has entered into a series of acquisitions to
establish a position of approximately 24,783 net acres in the
Midland Basin of the Permian, producing approximately 4,900
boepd.
Under the terms of the transaction, REL will realize gross cash
proceeds of approximately $237 million, representing a gross
multiple of invested capital of 2.1x on the Company's investment of
$114 million. This represents a gain of $123 million and an uplift
of $84 million or 55% above its carrying value of $152 million as
at 30 June 2016, when investments within the Portfolio were last
valued. The Company's gross profit of $123 million will be subject
to taxes and a performance fee upon closing of the sale, which is
expected to occur in early October and is subject to customary
closing conditions.
The Company will release its 2016 interim results, including the
updated NAV as at 30 June 2016, on 11 August 2016.
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. To date, REL has made 16 investments spanning
conventional and unconventional oil and gas activities in the Gulf
of Mexico, Continental U.S., Western Canada, the U.K. North Sea,
the Norwegian Sea, 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:
Alfredo Marti
Brian Potskowski
+44 203 206 6300
This information is provided by RNS
The company news service from the London Stock Exchange
END
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