Private Equity Raises $250 million for Houston Upstream Company

Hibernia Energy III, LLC (“Hibernia III”) is pleased to announce it has raised $250 million of new equity commitments from NGP through NGP Natural Resources XII, L.P., the most recent NGP private equity fund focused on natural resources.

 

In addition to the commitment from NGP, Hibernia management and members will be committing in excess of $21 million in equity. Hibernia III’s strategy is to acquire and prudently develop unconventional oil and gas assets in Texas, leveraging its proprietary relationships and operational expertise. The Houston, Texas based Hibernia team previously acquired, operated and developed assets in Martin County, Texas within the Midland Basin, divesting assets to both Athlon Energy and Eagle Energy Trust.
Hibernia III is led by P. Embry Canterbury, Sean Keenan and John Blevins. Embry previously co-founded Hibernia Energy, LLC (“Hibernia I”) and Hibernia Energy II, LLC (“Hibernia II”), which originally partnered with NGP in July 2010 and May 2013. Embry will be joined by Sean Keenan and John Blevins who will act as CFO and COO, respectively. Additional management team members have served in various roles at Permian-focused companies as reservoir engineers, operations engineers, geologists and land and business development managers. Carl Carter III, who co-founded Hibernia I and II, will act as a Strategic Advisor to the Hibernia III team. The senior management team has developed a strong track record in the Permian and other unconventional basins throughout the United States and brings 60+ years of industry experience to Hibernia III.
P. Embry Canterbury, CEO of Hibernia III, commented, “After two successful partnerships in the Midland Basin, we are excited to again be working with NGP on building another oil and gas company focused on creating significant value for our partners and team members. We believe there are tremendous opportunities in today’s market to acquire, develop, and realize value in multiple, unconventional resources and we have assembled a best-in-class team to execute this strategy.”
“NGP is excited and grateful to partner with the Hibernia III team,” Patrick McWilliams, Partner at NGP, said. “We are thrilled to get to work again with such an energetic, disciplined and skilled company and could not be happier to continue the partnership. We have known Embry and the Hibernia III team for years, and respect the dynamic culture, top-tier operating capabilities, and deep local relationships that will make Hibernia III truly successful.”

Private Equity Scooping Up Billions In North Sea Assets

There is confirmation it’s “money on” right now in the global petroleum sector — with one of the biggest single deals in years coming down in an unexpected place. From a virtually unknown acquirer — which has instantly become the largest independent producer in the neighborhood. That’s a London-based firm called Chrysaor Holdings. Which yesterday unveiled a $3.8 billion purchase of North Sea assets from Shell.  

Under the deal, Chrysaor is buying Shell’s working interest in seven North Sea projects. Coming with a current 115,000 b/d of oil equivalent production — plus another 13,000 b/d production in the Shetland Islands, which is expected to be onstream soon.
 

In total, Chrysaor will acquire 350 million barrels of proven and probable reserves — making the firm the largest U.K. independent producer focused on the North Sea. In fact, one of the largest producers overall in this area. Here’s the most interesting part: the deal appears to have been orchestrated by private equity backers.

With Chrysaor paying for the assets partly through a $1 billion investment from PE outfit EIG Global Energy Partners. That’s a very telling move, given that EIG is a Washington, D.C.-based fund that has to-date focused on U.S. oil and gas projects — with some stepouts to Australia and South America. But now this big buyer want to take a run at the North Sea. Suggesting management sees potential in this mature basin, even as majors like Shell exit in favor of higher-impact plays. This is much like what happened in the U.S. Gulf of Mexico shelf the last few years. Where majors like Chevron sold big asset packages to private equity-backed E&Ps. It will be critical to see what happens next. If new kids like Chrysaor can indeed grow production and reserves, it could encourage further PE purchases of mature assets. Watch for operational updates from the North Sea’s new leading producer.