Sierra Oil & Gas Announces Major Oil Discovery

RNS Number : 7825K

Riverstone Energy Limited

12 July 2017

 

- THIS ANNOUNCEMENT INCLUDES INSIDE INFORMATION -

Sierra Oil & Gas Announces Major Oil Discovery Offshore Mexico

London, UK (12 July 2017) - Sierra Oil & Gas, a Riverstone Energy Limited ("REL") portfolio company, has announced that the Zama 1 well has discovered significant quantities of oil in its primary target formation.

Preliminary analysis indicates the presence of a contiguous oil bearing interval of over 1,100 feet (335 meters) gross, with net pay of over 650 feet and no identified oil-water contact. Initial oil in place estimates for this target formation, which could extend into to a neighboring block, range from 1.4 to 2.0 billion barrels. Hydrocarbon samples recovered to surface contain light oil, with API gravity of 28-30.

Zama 1 is the first exploration well drilled by the private sector in Mexico since the start of the country's Energy Reform, and the discovery is one of the largest made in recent years in the Gulf of Mexico. The well is located in Block 7, in which Sierra holds 40% working interest, along with operator Talos Energy (35% working interest and also a Riverstone portfolio company) and Premier Oil (25% working interest). The discovery is on trend with other prospects in Block 7 and in two other blocks awarded to Sierra and its joint venture partners.

Sierra Oil & Gas is Mexico's first independent oil and gas company. Over the last two years, Sierra, in partnership with world-class operating partners, has secured five upstream blocks in Mexico's offshore licensing tenders.

As of 31 March 2017, REL had invested $1 million of its $38 million commitment in Sierra.

About Riverstone Energy Limited:

REL is a closed-ended investment company that invests exclusively in the global energy industry, with a particular focus on the exploration & production and midstream sectors. REL aims to capitalise on the opportunities presented by Riverstone's energy investment platform.  REL is a member of the FTSE 250 and its ordinary shares are listed on the London Stock Exchange, trading under the symbol RSE.  To date, REL has made 17 investments spanning conventional and unconventional oil and gas activities in the Gulf of Mexico, Continental U.S., Western Canada, the U.K. North Sea, the Norwegian Sea, Mexico and Credit.

For further details, see www.RiverstoneREL.com

Neither the contents of Riverstone Energy Limited's website nor the contents of any website accessible from hyperlinks on the websites (or any other website) is incorporated into, or forms part of, this announcement.

Media Contacts

For Riverstone Energy Limited:

Brian Potskowski Natasha Fowlie [phone]

 

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