JOG backed Vesta Energy secures $295M new funding from Riverstone and JOG

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By Ted Liu

Vesta Energy Corp., a portfolio company of JOG Capital, has secured a $295 million new equity financing round priced at CDN $4.50 per share, co-led by energy private equity firms Riverstone Holdings LLC and JOG Capital. Other investors in the round include certain funds managed by JOG and the Vesta management team.

In conjunction with the investments by Riverstone and JOG, Vesta intends to close a private placement offering of up to $10 million to existing shareholders at $4.50 per share.

Founded in 2010, Vesta Energy has raised $[mepr-active rule=”374″ ifallowed=”hide”] Read our research and get insight on Vesta Energy. We offer one-time or monthly/yearly recurring subscriptions. [/mepr-active][mepr-active rule=”374″]97 million in equity and convertible debenture financing. Most recently it raised $32 million in convertible debenture from JOG Capital.[/mepr-active]

The transaction is anticipated to close on May 26, 2017, and will provide Vesta with sufficient capital to execute on an accelerated development program across its extensive land base.

BMO Capital Markets and Goldman Sachs Canada acted as financial advisor to Vesta in connection with the transaction.

Led by founder and CEO Curtis Cook, Calgary based Vesta is a privately held exploration and production (E&P) company focused on the development of light oil properties in the shallow Joffre Duvernay Shale oil play.

The management team includes Paul Smith (CFO), Grant Rabe (COO), Jenny Ngo (CAO) and Dermot O’Connor (VP Exploration). Vesta’s management team brings strong industry experience from companies such as EOG Resources, Renaissance Energy, and Talisman Energy, and has an impressive track record of value creation across a variety of US and Canadian shale plays.

Vesta has assembled a contiguous land position of over 200,000 net acres within the Joffre Duvernay Shale oil play. The company currently has 23 wells on stream and is producing approximately 3,500 boe/d, of which 80% is light oil.

“We are excited to partner with Riverstone and to welcome Olivia Wassenaar and Denzil West to the Vesta Board of Directors. Riverstone will assist the Company in accelerating its development of the Joffre Duvernay Shale oil play and ultimately showcasing the play to the broader North American investment community. Riverstone brings a strong financial acumen as well as a deep understanding of the development of shale resource plays through the likes of Mark Papa, Riverstone partner, CEO of Centennial Resource Development, and former CEO of EOG Resources,” commented Cook.

“Our investment in Vesta reflects the confidence we have in Curtis and the entire Vesta management team. By applying learnings from US shale plays, Vesta is developing the Joffre Duvernay Shale oil play into a world class resource and one of the most economic plays in North America. We look forward to partnering with the management team and JOG to continue to grow the business,” said Olivia Wassenaar, Managing Director at Riverstone.

“We are pleased to welcome Riverstone, a leading energy private equity investor in North America, as a partner. The management team at Vesta has established a scalable, high quality, light oil resource, in a highly strategic location in Central Alberta, and has developed an organization that is unique and innovative in its approach to field operations. We look forward to working with all stakeholders to realize Vesta’s potential,” added Ryan Crawford, Managing Partner at JOG and Chairman of Vesta.

photo credit: Vesta Energy