Fundraising

Riverstone sells oil and gas business to Warwick

The energy-focused private equity firm has agreed to sell R/C Sugarkane to an affiliate of Warwick Energy Group.

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Riverstone/Carlyle Global Energy and Power Fund IV, a fund managed by New York private equity firm Riverstone Holdings, has agreed to sell R/C Sugarkane, an oil and gas company, to an entity affiliated with Warwick Energy Group.

The terms of the transaction, which is expected to close in early May, were not disclosed, nor was the name of the Warwick affiliate.

The private equity firm raised Riverstone/Carlyle Global Energy and Power Fund IV in 2009 in partnership with the Carlyle Group. It concluded its relationship with Carlyle in 2011.

R/C Sugarkane, located in the Eagle Ford Shale in Texas, is a private upstream oil and gas company with non-operated working interests comprised of approximately 6,000 net acres and with approximately 3,000 barrels of oil equivalent per day (boed).

Riverstone managed the asset in partnership with Texas Crude Energy, a private oil and gas company based in Houston.

“All of us at Riverstone would like to acknowledge our strong and close working relationship with Peter Fluor, KC Weiner and their colleagues at Texas Crude who offered us the opportunity to partner with them in their Sugarkane position in the Eagle Ford shale, which has proven to be one of the most successful resource plays in North America,” Riverstone managing director Peter Coneway said.

“ConocoPhillips acts as operator on nearly all of this particular acreage block in the Eagle Ford, and we wish Warwick success with this asset and in their partnership with Texas Crude and Conoco,” he added.

Founded in New York in 2000, Riverstone has raised $27 billion and has committed approximately $25.6 billion to 106 investments in North America, Latin America, Europe, Africa and Asia.

The firm conducts buyout and growth capital investments in the exploration and production, midstream, oilfield services, power and renewable sectors.

Based in Oklahoma City, Warwick Energy Group manages investment funds that own interests in over 5,000 wells in 13 states focused on onshore US natural gas and oil acquisition, exploration and production.