Riverstone Energy sells interest in Sierra Oil & Gas

5th Dec 2018 07:12

(Sharecast News) - Oil investor Riverstone Energy on Wednesday said it had sold 100% of its membership interests in Mexico-focused Sierra Oil & Gas to DEA Deutsche Erdoel for an undisclosed sum.The transaction is expected to close during the first half of 2019, after approval by Mexico's antitrust and hydrocarbons regulators.Riverstone will receive upfront cash (net of interim funding) approximately consistent with its current valuation, as well as subsequent earn-outs and adjustments related to the results of upcoming appraisal and exploration activities along with the unitization process of the Zama discovery.Sierra and its consortium partners in July 2017 confirmed the presence of shallow water light oil resources estimated to be in the range of 1.4bn - 2bn barrels of oil in place in the Zama 1 well.An appraisal program was commenced in November 2018 with the spud of the Zama 2 well, Riverstone said.