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RNS Number : 0459B
Riverstone Energy Limited
18 September 2018
 

Riverstone Energy Limited

18 September 2018

 

Hammerhead Resources Inc. Announces Equity Commitment

London, UK and Calgary, Canada (18 September 2018). Hammerhead Resources Inc. ("Hammerhead" or "HHR") has announced that it has secured a preferred share equity commitment of up to C$300 million that will provide financial flexibility to continue its organic growth program across its high quality resource base.

Hammerhead is a privately owned oil and gas producer focused on the liquids-rich Montney play in Alberta, and the largest investment of Riverstone Energy Limited ("REL" or the "Company"), representing 26.9% of the Company's gross assets as of 30 June 2018.

The preferred share equity commitment of up to C$300 million will be led by affiliates of Riverstone Holdings LLC ("Riverstone"), collectively HHR's largest shareholder. The financing will also feature a rights offering to certain existing common shareholders. REL owns approximately 31% of Hammerhead on a fully diluted basis and an announcement will be made in in due course regarding the extent of REL's participation in the preferred equity commitment, if any.

Proceeds from the equity commitment will be used to fund development activities principally in the Gold Creek and Karr areas, driving continued optimized capital efficiency with the use of multi-well pads in areas of existing infrastructure, combined with implementation of leading completion technologies. HHR believes that its balance sheet strength, industry-leading liquids growth, and secured firm egress differentiate the Company from its peers.

Hammerhead is currently producing over 28,000 boe/day, with a 42% weighting towards light oil and liquids. Annual production is expected to average over 27,000 boe/day in 2018, representing a 40% increase over 2017 levels. Since Riverstone's initial investment in 2014, the Company has increased production at a compound annual growth rate of over 70%, with a substantial corresponding increase in cash flow and reserves.

The Company will be releasing its quarterly portfolio valuations as of 30 September 2018 in October.

About Hammerhead

Hammerhead is a growth-oriented private company with a large, contiguous land base in the heart of two of the most prolific resource plays in North America, with over 200,000 net acres in each of the Montney and Duvernay formations. The Company's development has been focused on the Upper/Middle Montney, where delineation activity has proven the repeatability of the laterally continuous light oil-rich fairway.

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.

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:

Brian Potskowski

Natasha Fowlie

+44 203 206 6300


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