Riverstone invests in Three Rivers II to acquire assets in the Permian Basin
Riverstone has invested in Three Rivers Natural Resource Holdings II, a new private upstream oil and gas company based in Austin, Texas.
With this support, Three Rivers II executed a definitive agreement to acquire certain assets located in the Permian Basin of West Texas from Meritage Energy Company. These properties include 15,000 net acres with current production of approximately 1,900 barrels of oil equivalent per day located in Howard, Glasscock, Martin, Dawson and Upton Counties, Texas.
Three Rivers II will focus on oil and gas acquisition opportunities in the Permian Basin. Most recently, the management team led Three Rivers I, which sold its assets to an affiliate of Concho Resources earlier this year for approximately USD1.0bn. The team has significant experience in managing exploration and production assets, both in the Permian Basin and other regions of the US.
Mike Wichterich, chief executive of Three Rivers II, says: "We are excited to continue our successful relationship with Riverstone and appreciate their confidence in our team and business plan. The Meritage assets will provide a strong foundation for Three Rivers II as we continue to seek attractive new opportunities to expand our Permian position over time."
Pierre Lapeyre and David Leuschen, co-founders of Riverstone, add: "We are delighted to be working with Mike and his team again. This investment exemplifies Riverstone's strategy of re-partnering with proven management teams with deep, basin-focused operating expertise. We look forward to repeating the success we had with Three Rivers I."
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