Riverstone Energy Limited Closing of Three Rivers III Sale (2471L)

TIDMRSE

RNS Number : 2471L

Riverstone Energy Limited

17 April 2018

Riverstone Energy Limited

17 April 2018

Closing of Three Rivers III Sale

London, UK (17 April 2018). Riverstone Holdings LLC ("Riverstone"), the Manager of Riverstone Energy Limited ("REL" or the "Company"), has announced that the previously disclosed sale of Three Rivers Operating Company III LLC ("Three Rivers III"), closed today.

The transaction resulted in gross cash proceeds to REL of approximately $203 million, of which $191 million was received today and additional amounts are expected to be released after accounting for post-closing adjustments, wind-up costs and other obligations. The total sale price implies a gross multiple of invested capital of 2.2x and a gain of $109 million on the Company's investment of $94 million. The realised gain from this transaction was fully offset by net operating losses from prior years, resulting in no tax due.

Following the completion of the sale of its interest in Three Rivers III, and in accordance with the performance fee arrangements with Riverstone, Riverstone Energy Limited Capital Partners LP ("RELCP"), an entity controlled by David Leuschen and Pierre Lapeyre (each of whom are directors of REL and founders of Riverstone), intends to acquire $8.2 million of the Company's shares through secondary market purchases ("Share Purchase Programme") at prices below the prevailing published net asset value of the Company. RELCP has entered into an agreement with Numis Securities plc under which it has issued an irrevocable instruction to manage the Share Purchase Programme.

Following satisfaction of the performance allocation, REL will receive net proceeds of $182 million resulting in a net multiple of invested capital of 1.9x and a net IRR of approximately 40%.

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 13 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

[phone]

This information is provided by RNS

The company news service from the London Stock Exchange

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April 18, 2018 02:00 ET (06:00 GMT)