Riverstone Injects USD 150 mln into Fairfield Energy (UK)

Fairfield Energy, the private, North Sea-focused independent oil & gas company, has agreed terms for a major new injection of equity from funds sponsored by Riverstone Holdings LLC, the energy and power-focused private equity firm.

Riverstone will initially make a $150 million equity commitment with the option of subscribing a further $200 million alongside future contributions from current investors led by Warburg Pincus.

Fairfield Energy was established in late 2005 with the objective of participating in the anticipated change in ownership of assets held by the traditional North Sea players. Since then, the Company has built an extensive inventory of exploration and appraisal, development, and production assets in the Northern North Sea and Southern Gas Basin. Starting with the acquisition and refurbishment of the Dunlin fields and platform, Fairfield’s key assets now also include Darwin, Clipper South and Crawford / Porter. Darwin will see a major programme of exploration and appraisal drilling this year with three wells planned in partnership with TAQA. The Crawford and Porter discoveries are progressing to Field Development Plan with EnQuest as operator, and first gas from the Clipper South development is expected this summer. With Fairfield active in the 27th Round, the foundation is in place to deliver sustained and material growth.

The Riverstone investment will build on the platform provided by this established portfolio. Fairfield management sees significant opportunities in several plays and sub-basins in the North Sea, and these require major new investment to advance to full value. To be led jointly by Warburg Pincus and Riverstone, Fairfield’s investors remain committed to the Company’s original vision of building an independent oil & gas company of scale to pioneer this important chapter in the history of the North Sea.

Simon Eyers, Managing Director of Warburg Pincus, speaking on behalf of the existing investor group, said:

“We are delighted to welcome Riverstone as a joint lead investor in Fairfield; their $150 million investment firmly endorses Fairfield’s true potential, marking the launch of a new chapter for the Company and clearly demonstrating how Fairfield is fast evolving as a significant player in the UK North Sea. The progress that Fairfield has made in 2011 and 2012, across the whole portfolio of production, development and exploration assets, is testament to the depth and quality of the team and the real momentum they have given the business. We are excited to be so well positioned to capture the considerable value that exists in Fairfield’s current portfolio, as well as in the many new opportunities in the North Sea that the Company will now have access to with the Riverstone investment.”

Pierre Lapeyre and David Leuschen, Co-Founders of Riverstone, said:

“Fairfield is at the forefront of the next generation of North Sea-focused oil & gas companies. In its relatively short history, the Company has already established a strong operational track record and positioned itself for growth. Riverstone’s investment will help Fairfield reach its next stage of development, and we are looking forward to joining the investor group and supporting Fairfield’s management in maximizing the value of our investment in the coming months and years.”

In conjunction with the new Riverstone investment, Lord Browne of Madingley, Riverstone Partner and Ralph Alexander, Managing Director of Riverstone Holdings will join the Fairfield Board as non-executive directors.

Ron Emerson, Chairman of Fairfield Energy, said:

“We are very pleased to welcome Riverstone as a major new investor and welcome Lord Browne and Ralph Alexander, who will be joining the board as Riverstone representatives. They bring significant industry experience and wisdom to the Company, and we look forward to their contributions. With a strengthened balance sheet, a quality portfolio and the right team in place, we have an excellent platform and are very excited about Fairfield’s future as a highly successful exploration and production company.”

[mappress]
Press Release, July 9, 2012