Riverstone Energy Limited Sale of Rock Oil Holdings LLC to SM Energy Company (5500G)

TIDMRSE

RNS Number : 5500G

Riverstone Energy Limited

08 August 2016

- THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION -

Riverstone Energy Limited

08 August 2016

Riverstone Energy Limited Announces Sale of Rock Oil Holdings LLC to SM Energy Company

London, UK (08 August 2016). Riverstone Holdings LLC ("Riverstone"), the Manager of Riverstone Energy Limited ("REL" or the "Company"), has announced that it has agreed to the sale of 100% of the membership interests in Rock Oil Holdings LLC ("Rock Oil"), a Denver- and Houston-based oil and gas company focused on the Permian Basin, to SM Energy Company (NYSE: SM), a US-based E&P company.

Rock Oil was formed in March 2014 with the strategy of applying Rock Oil's land and technical expertise to the acquisition and development of assets in top-tier North American plays. Since formation, Rock Oil has entered into a series of acquisitions to establish a position of approximately 24,783 net acres in the Midland Basin of the Permian, producing approximately 4,900 boepd.

Under the terms of the transaction, REL will realize gross cash proceeds of approximately $237 million, representing a gross multiple of invested capital of 2.1x on the Company's investment of $114 million. This represents a gain of $123 million and an uplift of $84 million or 55% above its carrying value of $152 million as at 30 June 2016, when investments within the Portfolio were last valued. The Company's gross profit of $123 million will be subject to taxes and a performance fee upon closing of the sale, which is expected to occur in early October and is subject to customary closing conditions.

The Company will release its 2016 interim results, including the updated NAV as at 30 June 2016, on 11 August 2016.

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. To date, REL has made 16 investments spanning conventional and unconventional oil and gas activities in the Gulf of Mexico, Continental U.S., Western Canada, the U.K. North Sea, the Norwegian Sea, 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:

Alfredo Marti

Brian Potskowski

[phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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August 08, 2016 07:10 ET (11:10 GMT)