Kerogen Capital, a Hong Kong-based private equity firm led by two former JP Morgan dealmakers, has closed its energy-focused investment fund with commitments of more than $1bn.
Kerogen Energy Fund provides growth and development capital to junior upstream oil and gas companies focused on international emerging oil and gas basins and unconventional assets.
The vehicle will primarily invest in geographies of strategic importance to Asian demand, particularly China, which is expected to account for over 50 per cent of the net increase in world oil demand over the next 25 years, according to the International Energy Agency.
Forbes Private Capital Group acted as the fund’s placement agent.
Ivor Orchard, executive chairman, and Jason Cheng, managing partner, founded Kerogen and have worked together for over a decade in the energy and natural resources sector.
Orchard was the former head of the energy and natural resources group in Asia Pacific at JP Morgan.
Kerogen has already completed two investments.
The first is AJ Lucas Group, a drilling services company in Australia that holds a 43 per cent interest in Cuadrilla Resources.
Cuadrilla is a first mover in the European shale gas industry and holds an extensive portfolio of prospective shale gas acreage across Europe, including acreage in the Bowland shale in Lancashire, UK, with an estimated gas in place of over 200 trillion cubic feet.
Kerogen’s second investment, NewAge, is a private upstream company with a focus on emerging basins with significant potential for oil and gas discoveries within sub-Saharan Africa and Kurdistan.
NewAge is led by Steve Lowden, the former President of Marathon International. To date, the company has built a portfolio of 11 blocks across four countries.
“We believe the fund is well positioned to capitalise on many attractive investment opportunities within our pipeline of internationally focused junior upstream companies,” said Cheng.
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