Waterous acquires 67% of Northern Blizzard from NGP, Riverstone

Ted Liu

NGP Energy Capital and Riverstone Holdings to sell Northern Blizzard stakes at heavy loss to Waterous Energy Fund

Waterous Energy Fund (WEF), through Waterous Energy Fund (International) L.P. and Waterous Energy Fund (Canadian) L.P., has closed the previously announced acquisition of approximately 67% of the issued and outstanding common shares of Northern Blizzard Resources Inc. (TSX: NBZ) from affiliates of Riverstone Holdings, LLC, and NGP Energy Capital Management, LLC for a purchase price of $3.60 per share for approximately $244 million.

Waterous Energy Fund acquired 27,426,170 common shares, representing approximately 27.18% of the issued and outstanding common shares from R/C Canada Coöperatief U.A., and 40,316,175 common shares, representing approximately 39.91% of the issued and outstanding common shares, from NGP IX Northern Blizzard S.A.R.L..

Incorporated in November 2009 and initially funded by NGP in December 2009, Northern Blizzard acquired Nexen’s heavy oil properties located in Saskatchewan and Alberta for $944.3 million in cash, backed by $749.7 million in new equity from NGP, Riverstone and management and $270 million in bank debt.

Calgary based Waterous Energy Fund is an oil and gas private equity firm targeting a focused portfolio of owned and controlled investment opportunities between $100 and $400 million across North America. WEF’s current portfolio includes Strath Resources Ltd., a private oil and gas producer in the Kakwa region of the Montney basin of Alberta. To date, WEF has made equity commitments of approximately $650 million, and post-closing its investment in Northern Blizzard will control assets with an enterprise value in excess of $1 billion.

photo credit: Northern Blizzard

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