TIDMRSE
RNS Number : 7850D
Riverstone Energy Limited
28 June 2019
Riverstone Energy Limited Announces US$100 million Vaca Muerta
Midstream Commitment
London, UK (28 June 2019). Riverstone Holdings LLC
("Riverstone"), the Manager of Riverstone Energy Limited ("REL"),
has announced the signing of an agreement for REL to invest in
Aleph Midstream S.A. ("Aleph"), an independent Argentine oil and
gas gathering and processing-focused midstream company, in line
with REL's previously-stated modified investment approach.
Aleph has received a US$103 million commitment from funds
affiliated to Riverstone (comprising US$100 million from REL and
US$3 million from other investors) alongside commitments of US$54
million from Southern Cross Group, US$45 million[1] from Vista Oil
& Gas ("Vista"), and approximately US$3 million from the Aleph
and Vista management teams, for a total commitment of approximately
US$205 million, expected to be deployed over the next 24
months.
Aleph will become the first midstream player focused on
providing gathering, processing and evacuation services for oil and
gas production of Argentina's Vaca Muerta shale play, spearheading
a new paradigm for the development of this world-class shale play
built on the concept of long-term partnerships with
upstream-focused producers underpinned by acreage dedication
agreements.
Upon closing of the transaction, expected to occur in July 2019,
Aleph plans to start funding the construction of infrastructure
necessary to provide gathering, processing, and evacuation
midstream services to oil and gas producers in Vaca Muerta.
Starting in January 2020, Aleph plans to begin providing certain
midstream services to support Vista's Bajada del Palo Oeste shale
development in Vaca Muerta, as well as its existing conventional
and future unconventional production in the Neuquina Basin, under a
dollar-denominated long-term contract. Aleph is currently
negotiating credit facilities which it expects to close within the
third quarter of 2019.
Aleph plans to draw upon Riverstone's successful track record
building independent midstream businesses across North America to
serve growing production from unconventional developments.
Riverstone and its affiliates have a strong track record of safely
and profitably developing and managing midstream assets, with an
aggregate of US$6.9 billion committed to 23 midstream
investments[2] since inception, including recent investments in
onshore unconventional-focused gathering and processing assets via
its Meritage and Lucid platforms. Aleph will also leverage the
local expertise of Southern Cross Group and Vista. Southern Cross
Group is one of the largest and longest-standing Latin
America-focused private equity firms, and Vista possesses some of
the top operational and technical capabilities in the Neuquina
Basin.
About Vista Oil & Gas S.A.B. de C.V. (BMV: VISTAA):
Vista is a Latin American E&P company listed on the Mexican
Stock Exchange, with producing conventional and unconventional
assets in Argentina and Mexico. Its main operation is in the
Neuquina Basin and Vaca Muerta, a world class shale play. The
company is led by Miguel Galuccio, Chairman and CEO, along with a
team of experienced executives from the oil and gas industry. Vista
is executing its development plan targeting a production of 65,000
barrels of oil equivalent per day by 2022.
For further details, see www.vistaoilandgas.com/
About Southern Cross Group:
Southern Cross is one of the largest and longest-standing Latin
America-focused private equity firms, founded in 1998 to make
value-oriented investments in the region that have significant
potential for improved performance and growth. The Southern Cross
team is comprised of 30 professionals including a senior team with
almost 200 years of operating, consulting, M&A, capital
markets, turnaround and private equity experience in the region and
is one of the pioneers of private equity in Argentina with more
than 20 years investing in the country. Southern Cross is currently
investing its fifth fund, which has US$700 million in
commitments.
For further details, see http://www.southerncrossgroup.com/
About Riverstone Energy Limited:
REL is a closed-end investment company that invests exclusively
in the global energy industry across all sectors. REL aims to
capitalize 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 12 active investments spanning oil
and gas, energy services, and power in the Continental U.S.,
Western Canada, Gulf of Mexico and Europe.
For further details, see www.RiverstoneREL.com
About Riverstone Holdings LLC:
Riverstone is an energy and power--focused private investment
firm founded in 2000 by David M. Leuschen and Pierre F. Lapeyre,
Jr. with approximately US$39 billion of capital raised. Riverstone
conducts buyout and growth capital investments in the E&P,
midstream, oilfield services, power, and renewable sectors of the
energy industry. With offices in New York, London, Houston, and
Mexico City, Riverstone has committed over US$39 billion to more
than 180 investments in North America, Latin America, Europe,
Africa, Asia, and Australia.
For further details, see www.RiverstoneLLC.com
Neither the contents of Riverstone Energy Limited's, Riverstone
Holdings', Vista's, nor Southern Cross Group'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
For Riverstone Energy Limited:
Brian Potskowski
Natasha Fowlie
+44 20 3206 6300
[1] Vista expects to contribute substantially all of its
midstream assets located in the Neuquina Basin valued at
approximately US$45 million.
[2] Figures as of March 31, 2019 including co-investments.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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