Rock Oil Holdings LLC, a newly formed oil and gas company, reports an equity commitment of up to $250 million from funds managed by energy private equity firm Riverstone Holdings LLC and additional amounts from the company's management team. The Riverstone commitment comprises up to $167 million from Riverstone Global Energy and Power Fund V and up to $83 million from Riverstone Energy Ltd. (REL).
The Rock Oil management team previously built a substantial acreage position along with associated production in the Eagle Ford shale, which it sold in separate transactions to Sabine Oil and Gas and Sanchez Energy Corp. in 2012 and 2013, respectively, at material premiums to invested capital.
Similar to the strategy employed by the Rock Oil team in the Eagle Ford shale, Rock Oil will apply the management team's land and technical expertise to build concentrated acreage positions with substantial production in areas that are known for repeatable and predictable results. Rock Oil will likely concentrate its efforts in the Eagle Ford shale, the Utica shale, and the Permian Basin, which are well suited to the company's land and technical capabilities.
Rivington Holdings LLC, and its affiliate, Rivington Securities LLC (FINRA member), acted as exclusive financial advisor to Rock Oil. DLA Piper LL and Latham & Watkins LLP provided legal counsel to Rock Oil and Riverstone, respectively.