LONDON, UK: Riverstone Energy Limited (REL) has agreed to the sale of all offshore Gulf of Mexico assets owned by affiliates of Castex Energy 2014, LLC to Talos Energy Inc..
In addition, Riverstone agreed to sell all of the undrilled primary term acreage and prospects of ILX Holdings III to Talos for non-material consideration. REL owns 25.1 per cent of Castex 2014 and 33.3 percent of ILX III and has invested $52 million and $155 million in the companies, respectively.
REL is a closed-ended investment company that invests exclusively in the global energy industry across all sectors.
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.