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Riverstone in $217m Duvernay financing pact

Investment firm joins others to commit funding to privately held Vesta Energy

Riverstone Holdings is joining other investors to commit $295 million ($216.6 million) in equity financing to privately held Canadian player Vesta Energy.

Riverstone will co-lead a C$295 fundraising round with Western Canada-focused private equity firm Jog Capital. Other investors in the round include certain funds managed by Jog and the Vesta management team.

In addition, Vesta will launch a private placement valued up to $10 million to existing shareholders.

The financing is expected to close on 26 May and provide Vesta with the capital needed to accelerate its Duvernay shale development programme. The company has a contiguous land position of over 200,000 net acres within the Joffre Duvernay shale oil play in central Alberta, with 23 wells producing about 3500 barrels of oil per day, 80% of which is light oil.

Vesta ultimately hopes to "showcase" the play to the broader North American investment community, chief executive Curtis Cook said.

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