Energy Capital Briefs

Aquilon Energy Services raises $19M

Aquilon Energy Services Inc., developer of a collaborative cloud-based platform that enables buyers and sellers to automatically settle both physical and financial energy transactions, has raised $19 million during a Series B financing round. The Series B financing round includes investments from Citi, Goldman Sachs Principal Strategic Investments, Invenergy and Macquarie Group. All committed to use Aquilon's Energy Settlement Network (ESN™). ESN™ is designed to enable settlement departments at energy companies and financial institutions to track, review, and approve transactions, identify discrepancies, and collaborate with counterparties to resolve exceptions within a single interface.

Kerogen Capital invests in Energean Israel

Energean Israel, a subsidiary of Energean Oil & Gas, has received an initial commitment of US$50 million from Kerogen Capital ahead of the planned $1.3 billion development of the Karish and Tanin gas fields, offshore Israel. Energean Israel is the operator of and holds a 100% interest in each of the Karish and Tanin leases, acquired from Delek Group in December 2016, for an upfront consideration of $40 million as well as $108.5 million in contingent payments. Proceeds from Kerogen's investment will finance the acquisition and key workstreams to investment sanction including FEED studies and the Field Development Plan currently being prepared in cooperation with TechnipFMC. The fields contain at least 2.4 Tcf of Gas contingent resources (NSAI report), and will be developed through an FPSO that will be the first to be installed and operated in the East Mediterranean. First gas expected is in 2020. The investment is subject to approval by the Israeli Government, after which Kerogen will own a 50% interest in Energean Israel with Energean holding the balance.

Circle 8 Crane Services recapitalized

Circle 8 Crane Services, a provider of operated and maintained crane lifting services to the oil and gas, commercial, and industrial markets in the US, has received a capital commitment from Trive Capital, a Dallas-based private investment firm. Circle 8, founded in Corpus Christi, TX, in 2007, now has locations throughout South Texas, West Texas, Houston, East Texas/Louisiana, and Oklahoma. Founders Investment Banking LLC served as the exclusive financial advisor to Circle 8 Crane Services in the recapitalization.

Post Oak Energy Capital leads $200M commitment to Moriah Henry Partners

Post Oak Energy Capital LP, through investment partnerships it manages, led a $200 million equity commitment to Moriah Henry Partners LLC. Henry Energy LP and Moriah Energy Investments LLC will co-invest alongside Post Oak. Midland-based Moriah Henry Partners is focused on the acquisition and development of oil and gas properties in the Midland Basin. Henry Energy is a privately held Permian Basin oil and gas producer. Until 2008, when the entity was sold to Concho Resources, the company operated under the name of Henry Petroleum. After the sale, management reorganized and commenced operations under Henry Energy and its operating company, Henry Resources LLC.

Crimson Resources, Vortus Investments

partner to pursue South Texas opportunities

Crimson Resources LLC (CR) has partnered with an investor group, led by Fort Worth-based Vortus Investments LP, and includes management and other private investors. Based in Fort Worth, CR will focus on acquiring, leasing, and developing oil and natural gas assets in South Texas. CR is a newly formed company with an experienced management team led by Frank Starr and Tripp Rivers. Prior to forming CR, Star and Rivers managed several Fort Worth-based oil and natural gas companies including Crimson Energy Company, Crimson Energy Partners II LLC and Crimson Energy Partners III LLC.

Black Stone enters farmout with Canaan Resource Partners

Black Stone Minerals LP has entered into a farmout agreement with Canaan Resource Partners. The farmout covers the partnership's working interests within an approximate 34,000 gross acre block in San Augustine County, Texas. Black Stone expects the agreement to reduce its capital obligations by ~$35 million in 2017 and by an average of $40-$50 million annually thereafter during three program phases. The agreement covers certain Haynesville and Bossier shale acreage in the Shelby Trough operated by XTO. Black Stone has an average 50% working interest (WI) in the acreage and is the largest mineral owner. 58 wells are expected to be drilled over an initial phase and two additional phases that Canaan may participate, with each phase estimated to last approximately two years. During the first three phases, Canaan will commit on a phase-by-phase basis and fund 80% of Black Stone's drilling and completion costs and will be assigned 80% of Black Stone's WI in such wells (40% WI on an 8/8ths basis). After the third phase, Canaan can earn 40% of the partnership's WI (20% WI on an 8/8ths basis) in additional wells drilled in the area by continuing to fund 40% of Black Stone's costs for those wells on a well-by-well basis. Black Stone Minerals receives a base overriding royalty interest (ORRI) before payout and an additional ORRI after payout on all wells drilled under the agreement. Tudor, Pickering, Holt & Co. served as financial advisor for Black Stone. Vinson & Elkins provided legal advice.