Riverstone LLC invests US$58 million in Cuadrilla Resources

Source Company Press Release
Company Cuadrilla Resources Ltd, Riverstone Holdings LLC
Tags Financial - Costs & Metrics: Capital Expenditures, M&A: Deals, Segment: Shale/Tight News, Upstream: Upstream News
Date February 23, 2010

Lucas announced that the Riverstone/Carlyle Global Energy and Power Funds, a group of energy-focused private equity funds managed by Riverstone Holdings LLC, has committed to subscribe US$58.0 million for equity in Cuadrilla Resources Holding Ltd, the holding company established by Lucas to hold its investment for unconventional hydrocarbons exploration and development in Europe.

Cuadrilla is now well capitalised with sufficient resources and the ability to fund its drilling and exploration program for the next three years. The board of Cuadrilla will comprise three representatives from each of Lucas and Riverstone, with two representatives from management.

Allan Campbell, CEO and Chairman of Lucas, said: “With Stage 1 of the Cuadrilla Business Plan now completed, we are very pleased to have an investor of Riverstone’s standing join us to assist in the next stage of Cuadrilla’s development. Riverstone already has a significant investment portfolio in the energy and power industries. This network of strategic relationships together with Riverstone’s substantial financial resources will be of considerable benefit to Cuadrilla.

“Cuadrilla has acquired an extensive portfolio of highly prospective acreage throughout Europe. With continuing advances in drilling and fraccing technology, we have high expectations of proving up this acreage.”

Pierre Lapeyre and David Leuschen, Co-Founders of Riverstone said: “Cuadrilla has a proven management team with a demonstrated track record in the exploration and commercialisation of unconventional hydrocarbons backed by petrophysical and geological science of world standing. We are very pleased to join AJ Lucas in developing the very considerable potential inside Cuadrilla. The vertically integrated business plan gives the company an edge that other explorers do not have.”

About Cuadrilla

Cuadrilla was formed in September 2007 as a privately held exploration and production company focused on bringing together leading unconventional oil and gas explorers, developers and technologists to unlock untapped unconventional resource plays in selected parts of Europe, in an environmentally and socially acceptable manner.

The philosophy behind the establishment of Cuadrilla was to combine a proven management team with proprietary exploration, operational and extraction IP to select plays in established hydrocarbon provinces in carefully identified European countries and to have a vertically integrated business model in terms of drilling and extraction capability.

Lucas was a founding shareholder in Cuadrilla and has supported the management team since the company’s inception. Lucas’ total investment as of today’s date amounts to A$52.4 million.
Cuadrilla has applied for, and in some cases been granted, exploration licences totalling in excess of 1.5 million acres in the UK, Holland, Spain and Poland. In addition, Cuadrilla has designed, overseen the manufacture of and delivered state of the art cementing and fracture stimulation equipment and is soon to take delivery of a DrillMec HH220 top drive rig.

Cuadrilla’s management is a proven operational management team with global experience and technical leadership in finding unconventional hydrocarbons. It is lead by Dr Chris Cornelius and Mr Dennis Carlton, (both ex Evergreen Resources) and includes Dr Peter Turner and Prof Marc Bustin from the technology side and Messrs Mark Miller and Eric Vaughan from the operational side. Cuadrilla is based in Lichfield, Staffordshire in the UK.

Cuadrilla intends to continue to assemble acreage in Europe in areas which have been identified during the past three years and, at the same time, to commence fraccing and drilling activities in the UK. Drilling activities in the Bowland Basin (PEDL165) are scheduled to commence in April 2010.

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