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Providing coverage of Alaska and northern Canada's oil and gas industry
July 2014

Vol. 19, No. 30 Week of July 27, 2014

Furie gets financing for Kitchen Lights

Kristen Nelson

Petroleum News

Furie Operating Alaska has received an investment commitment of $160 million from Energy Capital Partners Mezzanine Opportunities Fund for development at Kitchen Lights.

“The investment will fund the build-out of infrastructure for the installation of an offshore natural gas production platform, marine pipeline, and onshore production facilities to bring proven natural gas reserves to market from Furie’s Kitchen Lights Unit in the Cook Inlet,” Energy Capital Partners said in a July 18 release.

The platform, the first new Cook Inlet platform since Osprey was installed in 2000, will allow natural gas from Kitchen Lights to diversity supply for the Kenai Peninsula, Matanuska-Susitna and Anchorage areas, Energy Capital partners said.

More exploration, development

Furie said it plans to continue exploration and development at the 83,000-acre lease position at Kitchen Lights.

“We are thrilled to form a partnership with a highly experienced capital provider in Energy Capital Partners. Their financial strength, industry relationships and midstream experience create a strong partnership,” said Damon Kade, Furie’s president.

Nazar Massouh, who leads Energy Capital’s energy-focused mezzanine investment activities called the partnership “a great example of Energy Capital’s collaborative approach of applying its energy industry knowledge and creative capital to partner with an experienced team to build much-needed midstream assets.”

“We are excited to launch a partnership with a team that has a solid track record in Cook Inlet,” Massouh said.

Latham & Watkins LLP acted as legal advisor to Energy Capital Partners. Stoel Rives LLP (Anchorage and Seattle offices) and Cogan & Partners LLP of Houston, acted as legal advisors to Furie Operating Alaska.

Cornucopia majority WIO

Furie’s Kitchen Lights unit includes a number of oil and gas leases owned by majority working owner Cornucopia Oil & Gas Co.

Furie was formed in 2011 when Escopeta Oil, which formerly held the Kitchen Lights unit, was divided into Furie Operating Alaska and Cornucopia Oil and Gas Co.

Alaska Department of Natural Resources Division of Oil and Gas records show that Cornucopia holds 82,108 acres of state oil and gas leases, while Furie Operating Alaska holds 884 acres.

Ownership of leases in the Kitchen Lights unit varies, but is generally held 79-80 percent by Cornucopia of League City, Texas, some 8 percent by A.L. Berry of Houston, some 7 percent by Danny Davis of Houston, some 5 percent by Taylor Minerals of Houston and 1 percent by Furie Operating Alaska of League City, Texas.

Energy Capital Partners is an energy-focused private equity firm with more than $13 billion in capital commitments and offices in Short Hills, Houston and San Diego.

—A copyrighted oil and gas lease map from Mapmakers Alaska was a research tool used in preparing this story.






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