Kerogen Capital invests $125m in emerging markets oil firm
Hong Kong-based Kerogen Capital has committed $125 million to NewAge (African Global Energy), becoming the largest shareholder in the company. The investment will be made in three tranches, with Kerogen also having the right to co-investment alongside NewAge as an equal partner on future projects in Sub-Saharan Africa and Iraq, including Kurdistan.
It is the second deal completed by Kerogen Energy Fund, following a A$125 million ($130 million) commitment to Australian drilling company AJ Lucas Group in September 2011.
NewAge is an independent oil and gas exploration company set up by Steve Lowden, former president of Marathon International. Its strategy is to acquire high quality resources portfolios by being an early entrant in emerging regions. NewAge currently has 13 oil and gas blocks in four countries with a net acreage of 88,000 square kilometers. These include assets in Congo-Brazzaville, Kurdistan, Ethiopia and South Africa.
Kerogen will appoint two directors to the NewAge board and also have two representatives on a newly-formed technical operating committee.
"NewAge represents a highly attractive platform for Kerogen to execute its sub-Saharan Africa strategy, given its operational and business development track record as well as its established regional relationships and business development pipeline," Ivor Orchard, executive chairman of Kerogen, said in a statement. "In addition, NewAge also provides an attractive entry point into Kurdistan, one of the most prolific hydrocarbon provinces in the world."
Kerogen specializes in providing growth and development capital to small and medium-sized companies in the energy and energy-related sectors. It was reported in August of last year that the firm was seeking to raise a $1.5 billion fund and had signed up China National Offshore Oil Corp. (CNOOC) and Kuwait Investment Authority (KIA) as cornerstone investors.
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