Riverstone Holdings LLC, the Manager of Riverstone Energy Limited (LON:RSE), today announced that it has agreed to the sale of 100% of its membership interests in Sierra Oil & Gas, an oil and gas company focused on Mexico’s offshore Sureste Basin to DEA Deutsche Erdoel AG, an international independent exploration and production company headquartered in Germany.
Since it was formed in 2014, Sierra has participated in multiple offshore exploration tenders held by Mexico’s National Hydrocarbons Commission, securing six blocks in partnership with majors, national oil companies and large independents. In July 2017, Sierra and its consortium partners announced a historic oil discovery in Block 7. The Zama-1 well confirmed the presence of shallow water light oil resources estimated to be in the range of 1.4 billion to 2.0 billion barrels of oil in place. An appraisal program was commenced in November 2018 with the spud of the Zama-2 well.
The transaction is expected to close during the first half of 2019, following approval by Mexico’s antitrust and hydrocarbons regulators. The consideration to be received by REL is composed of 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.
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 12 active investments spanning conventional and unconventional oil and gas activities in the Continental U.S., Western Canada, Gulf of Mexico, Mexico and credit.
