USA: Investors Boost Venari with USD 1.1 Billion

Venari Resources LLC , an early-stage company focused on deep water oil exploration in the Gulf of Mexico, today announced that leading investment firms Warburg Pincus, Kelso & Company, Temasek, and The Jordan Company have agreed to make an investment of up to $1.125 billion in the Company.

Venari Resources is led by Chief Executive Officer (CEO) Brian Reinsborough, former President and CEO of Nexen Petroleum U.S.A. Inc., a wholly owned subsidiary of Nexen Inc. Mr. Reinsborough also served recently with Warburg Pincus as an Executive-In-Residence, where he worked in close collaboration with the firm to formulate Venari’s business plan. While at Nexen, Mr. Reinsborough led the organization in the United States, which included responsibility for the development and execution of the company’s business in the deep water Gulf of Mexico over the past 15 years. He also worked previously at Amoco Production Company and Mobil New Exploration Ventures Inc. At Venari, Mr. Reinsborough is joined by some key members of his former technical and commercial team along with highly experienced colleagues from the industry that have worked together for more than a decade.

Brian Reinsborough, CEO of Venari commented, “We are excited to partner with these top investment firms in this new venture and look forward to growing the business into an industry leader. The deep water Gulf of Mexico remains one of the most attractive basins in the world to search for large oil reserves, and we are thrilled to have such a strong financial commitment to build the Company in the deep water. Being part of one of the largest private financings for a start-up company in the oil and gas sector is a tremendous testament to the team and to the future of the deep water Gulf of Mexico.”

In Seon Hwang, Managing Director, Warburg Pincus, which led the investment in Venari said, “We are pleased to continue our partnership with Brian and are looking forward to growing the Company as it explores new resource opportunities in the Gulf of Mexico. With Venari as our sixth investment in the basin over the past 25 years, we have long identified the Gulf of Mexico as an attractive area of high geologic potential. Today, with the establishment of new environmental protocols and the revival of drilling and permitting activity, the basin offers a safer operating environment and an attractive opportunity to build a meaningful business.”

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Source: PRNewswire, May 23, 2012