Key Financials (unaudited)
o NAV as at 30 September 2014
o NAV per share as at 30 September 2014
o Profit/(loss) during period
o Basic profit/(loss) per share during period
o Market capitalisation at 30 September 2014
$1,035 million (£638 million)1
o Share price at 30 September 2014
$14.57 / £8.981
Total committed capital during the period of $299 million
o $90 million to Canadian Non-Operated Resources LP (CNOR)
o $75 million to Sierra Oil and Gas
o $67 million to Castex Energy
o $67 million to Origo Exploration
Total invested capital during the period of $32 million
o $21 million in Castex Energy
o $8 million in Eagle Energy Exploration LLC
o $1 million each in Rock Oil Holdings LLC, Origo Exploration and Sierra Oil and Gas
Total committed capital to date is $674 million or 55 per cent. of total capital raised2
Total invested capital to date is $199 million or 16 per cent. of total capital raised2
In the period since
"The Directors and I are pleased with our performance in the third quarter of the year, as demonstrated by new commitments totalling
"The REL portfolio continues to develop very well and provide investors with a broad level of exposure to a range of E&P opportunities. In each of the four commitments made this quarter - CNOR, Sierra, Castex and Origo - we are investing alongside proven management teams focusing on exploration and production. While all nine REL investments are still in their initial stages, we are very excited about their near term prospects and are encouraged by the early returns the portfolio is beginning to generate in terms of MOIC."
Fieldwood Energy LLC ("Fieldwood")
Liberty Resources II LLC ("Liberty II")
Castex Energy 2014, LLC ("Castex")
On 4 September 2014, REL, through the Partnership, committed $67 million to Castex and has invested a total of $21 million as of 30 September 2014. Castex is a newly-formed, Houston-based oil and gas company focused on exploration and will co-invest with Castex Energy 2005, L.P. ("Castex 2005") to test and develop Castex's current and future drilling prospect inventory in the U.S. Gulf Coast Region. Castex is managed by Castex Energy, Inc., which has a 27 year operating history in exploration and development in South Louisiana and the Gulf of Mexico Shelf. Castex's strategy triangulates amplitude analysis from the Company's extensive 3D seismic library and management's nearly three decades of experience with the hydrocarbon bearing sands and trap characteristics of faults and salt domes in its focus area.
Eagle Energy Exploration LLC ("Eagle II")
Rock Oil Holdings LLC ("Rock Oil")
As of 30 September 2014, REL, through the Partnership, has invested $3 million of its $83 million commitment to Rock Oil. Rock Oil is a newly formed, Denver and Houston-based oil and gas company focused on the acquisition and development of assets in top-tier North American plays. The company is led by Chairman and CEO Kyle R. Miller, who has a proven track record of creating value, most recently at the previous iteration of Rock Oil, which was exited in separate sales to Sanchez Energy and Sabine Oil & Gas. Rock Oil is currently evaluating potential investment opportunities in the Eagle Ford, Permian and Utica.
Origo Exploration AS ("Origo")
On 26 August 2014, REL, through the Partnership, committed $67 million to Origo and has invested a total of $1 million as of 30 September 2014. Origo is a newly formed, Norway-based oil and gas company focused on exploration on the Norwegian and U.K. continental shelves. The company is led by a team who previously founded and sold two successful North Sea focused exploration companies: Revus Energy, founded in 2003 and acquired by Wintershall in 2008; and Agora Oil & Gas, founded in 2009 and acquired by Cairn Energy in 2012. Origo will target participating in the drilling of three to five exploration wells per year in the North Sea through farm-ins and licensing rounds.
Sierra Oil and Gas ("Sierra")
On 18 September 2014, REL, through the Partnership, committed $75 million to Sierra and has invested a total of $1 million as of 30 September 2014. Sierra is an independent Mexican energy company established to pursue select upstream and midstream opportunities in Mexico. Led by a team of experienced energy executives from the region, Sierra's core business plan is to access and develop low-to-medium risk oil and gas opportunities as the Mexican energy industry undergoes a historic period of reform and liberalization. Sierra plans to establish itself as a preferred domestic partner for oil and gas activity in Mexico through differentiated access to international technical and commercial best practices, deep expertise in subsurface and operations in Mexico, and financial strength from leading international energy investors.
Canadian Non-Operated Resources ("CNOR")
On 12 August 2014, REL, through the Partnership, committed $90 million to CNOR and has invested a total of $0.5 million as of 30 September 2014. CNOR is a newly-formed, Calgary-based oil and gas company. The Company is led by industry veteran Richard Grafton, who has an outstanding track record in the Canadian oil and gas sector as director of multiple successful exploration and production companies. During the quarter, CNOR entered into a multi-year joint venture arrangement with Bellatrix Exploration Ltd. in which it has committed a total of $250 million in capital (of which approximately $40 million is from REL) towards future accelerated development of a portion of Bellatrix's extensive undeveloped land holdings in Western Canada. The capital is expected to be invested primarily from 2016 through 2018.
Valuation of the Portfolio
Subsector (Drilling Technique)
Committed Capital ($mm)
Gross Unrealized Value ($mm)3
13 Mar 2014
Gulf of Mexico Shelf (U.S.)
Exploration & Production ("E&P")
7 Nov 2013
27 Mar 2014
Deep Basin (Canada)
4 Sep 2014
Gulf Coast Region (U.S.)
13 Dec 2013
E&P (Conventional / Unconventional)
13 Mar 2014
Eagle Ford, Utica and Permian (U.S.)
26 Aug 2014
North Sea (Norway, U.K.)
18 Sep 2014
E&P (Conventional / Unconventional)
12 Aug 2014
Percentage of total REL capital4
Outlook and Pipeline
The investment pipeline for REL remains robust, with several actionable exploration & production and midstream investments in various stages of review and negotiation. Like the nine investments completed to date, the opportunities in the pipeline are led by world-class management teams who are well known to Riverstone and have extensive track records in their specific areas of operation.
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. The company is uniquely positioned to benefit from the large number of investment opportunities being driven by the North American energy revolution and the continued growth in global energy demand. 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
For further details, see www.RiverstoneREL.com
Neither the contents of
This IMS aims to give an update of material events and transactions that have taken place during the period from
This IMS contains forward-looking statements that are based on current expectations or beliefs, as well as assumptions about future events. Undue reliance should not be placed on any such statements because they speak only as at the date of this document and, by their very nature, they are subject to known and unknown risks and uncertainties and can be affected by other factors that could cause actual results and REL's actions to differ materially from those expected or implied in the forward-looking statements.
This IMS has been prepared solely to provide additional information to shareholders as a body to meet the relevant requirements of the FCA's Disclosure and Transparency Rules and this IMS should not be relied on by any other party or for any other purpose.
1 Assumed exchange rate of
2 Based on total capital raised of
3 Gross MOIC is Multiple of
4 Based on total capital raised of
This information is provided by RNS