Riverstone Energy invests in US shale company

13th Mar 2014 08:50

In its second announcement of the day, it was confirmed that Riverstone Energy had agreed to invest 83m dollars in newly formed US oil and gas company Rock Oil Holdings alongside its private equity parent Riverstone Holdings. Rock Oil's management team, led by Chairman and Chief Executive Officer Kyle Miller, previously built a substantial production acreage in the Eagle Ford Shale in Southern Texas that eventually sold at material premiums to invested capital.The Rock Oil team will follow a similar strategy, using their land and technical expertise to build concentrated acreage positions with substantial production in areas that are known for repeatable and predictable results.This is liekly to be in the Eagle Ford Shale, the Utica Shale along the Appalachian basin and the Permian Basin in West Texas, which are well suited to the team's land and technical capabilities. Riverstone Holdings is also investing up to $167m via two of its funds, Riverstone Global Energy and Power Fund V. John Lancaster, Partner at Riverstone, added: "Our equity commitment to Rock Oil reflects the confidence that we have in Kyle and the entire Rock Oil team. We believe this new venture is well situated to capitalise on the continued opportunities we see in their focus regions."OH