Riverstone Energy Limited Sale of Gulf of Mexico Assets to Talos Energy Inc. (4808W)
11 Dicembre 2019 - 8:00AM
UK Regulatory
TIDMRSE
RNS Number : 4808W
Riverstone Energy Limited
11 December 2019
Riverstone Energy Limited
11 December 2019
Riverstone Energy Limited Announces Sale of Offshore Gulf of
Mexico Assets to Talos Energy Inc.
London, UK (11 December 2019). Riverstone International Limited,
the Manager of Riverstone Energy Limited ("REL"), together with
Riverstone Holdings ("Riverstone") have agreed to the sale of all
offshore Gulf of Mexico assets owned by affiliates of Castex Energy
2014, LLC ("Castex 2014") to Talos Energy Inc. ("Talos", NYSE:
TALO) (the "Castex 2014 Sale"). In addition, Riverstone agreed to
sell all of the undrilled primary term acreage and prospects of ILX
Holdings III ("ILX III") to Talos for non-material consideration
("ILX III Sale" and collectively with the Castex 2014 Sale, the
"Transaction" or "Sold Assets"). REL owns 25.1 per cent. of Castex
2014 and 33.3 per cent. of ILX III and has invested $52 million and
$155 million in the companies, respectively.
The net consideration at closing of the Castex 2014 Sale and ILX
III Sale is expected to be funded with the issuance of new Talos
shares and cash from existing sources of liquidity. The purchase is
subject to customary purchase price adjustments between the 1 July
2019 effective date and the closing date of the Transaction, which
is expected in the first quarter of 2020.
The Castex 2014 Sale represents a full realization of REL's
Castex 2014 investment and implies a 0.3x Gross MOIC, which is
consistent with REL's 3Q 2019 valuation. The ILX III Sale includes
only exploration prospects that ILX III did not intend to drill
within its current equity commitment and has no impact on REL's 3Q
2019 valuation of 1.2x Gross MOIC.
Talos is a technically driven independent exploration and
production company with operations in the United States Gulf of
Mexico and offshore Mexico. Talos leverages its geology, geophysics
and offshore operations expertise to pursue the acquisition,
exploration, exploitation and development of assets, with a focus
on safely and efficiently maximizing cash-flows and long-term
value.
Evercore Inc. and Latham & Watkins L.L.P. are serving as
financial and legal advisors to Riverstone, respectively.
Guggenheim Securities, LLC acted as lead financial advisor to Talos
and delivered a formal fairness opinion with respect to the
transaction. J.P. Morgan Securities LLC also provided financial
advice to Talos with respect to financing. Vinson & Elkins
L.L.P. acted as legal advisors to Talos.
About Riverstone Energy Limited:
REL is a closed-ended investment company that invests
exclusively in the global energy industry across all sectors. REL
aims to capitalise on the opportunities presented by Riverstone's
energy investment platform. REL's ordinary shares are listed on the
London Stock Exchange, trading under the symbol RSE. REL has 11
active investments spanning oil and gas, midstream, and energy
services in the Continental U.S., Western Canada, Gulf of Mexico,
Latin America 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
For Riverstone Energy Limited:
Natasha Fowlie
Brian Potskowski
+44 20 3206 6300
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contact rns@lseg.com or visit www.rns.com.
END
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