Kerogen Capital backs Asia Pacific oil & gas exploration company Twinza


Energy-focused private equity firm Kerogen Capital has invested $27m in Twinza Oil, a private Asia Pacific-focused exploration and production company.

The investment was made via the firm’s Kerogen Energy Fund, which is backed by China National Offshore Oil Corpand Kuwait Investment Authority.

Kerogen is to begin preparing to launch its next fund later in the year, the firm said.

Twinza was incorporated in Australia in 2004 and founded by Bill Clough, the Clough Family Trustees and the management team. Kerogen will become the second largest shareholder in Twinza with an equity interest of up to 29 per cent behind the Clough Family.

Twinza has established an portfolio of majority owned and operated positions in the Asia Pacific, including a high potential oil and gas shale play n the prolific Cooper Eromanga Basin in Queensland, Australia, a 50 per cent operating interest, two adjacent onshore exploration blocks located in an extension of the successful gas producing basin in North-Central Thailand, and a 90 per cent operating interest in a shallow water gas and condensate appraisal project in Papua New Guinea.

Kerogen’s investment case is underpinned by the highly attractive Pasca A liquids-rich gas discovery, said Kerogen executive chairman Ivor Orchard. It is located in shallow water in the Gulf of Papua of PNG. “The Exxon-led $19bn PNG LNG project has demonstrated PNG to be a highly prospective hydrocarbon producing region, with the project expected to produce some of the most attractive economic returns amongst new-build LNG projects globally,” he said.

With Trains 1 and 2 on track to commence gas sales in 2014, together with plans for further trains and competing LNG projects, upstream gas resource aggregation is now a key industry trend in PNG, driven by a number of majors, Asian national oil companies and large cap independents, Orchard noted.

Proceeds from Kerogen’s investment will be used to fund an agreed work programme and budget, primarily to appraise and develop the Pasca A gas-condensate project.

Orchard said, “Twinza represents an ideal platform for the execution of the Fund’s Southeast Asia strategy, given management’s operational and business development track record as well as established regional relationships>”

London and Hong Kong-based Kerogen focuses on partnering with small-to mid-sized junior oil and gas companies active outside North America. Kerogen currently manages in excess of $1bn in capital.

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