Riverstone Energy Limited Hammerhead Resources Inc. Equity Commitment (0459B)
September 18 2018 - 2:01AM
UK Regulatory
TIDMRSE
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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END
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