Kerogen Capital (“Kerogen”) is pleased to announce that it has successfully exited its investment in HKN Holding Limited (“HKN”) through an effective buyback of our interest in HKN by Hillwood, our partner and the sponsor of HKN, for a total consideration of up to $200 million, comprising $80 million upfront and earn-out payments of up to $120 million.

We believe this transaction represents an attractive outcome for LPs, enabling a realisation of up to 2.0x MoIC of which 0.8x MoIC is paid upfront.  We remain well aligned with Hillwood on optimising the performance of the underlying Sarsang Block to enable the pay out of both earn-out payments to Kerogen and ordinary dividends to Hillwood.

Jason Cheng, Managing Partner and CEO of Kerogen Capital, commented:

“Hillwood has been an excellent partner. We are grateful for the successful partnership with Hillwood over the years and deeply value the high performing HKN management team that has successfully built one of the leading E&P companies in Kurdistan.

We see this transaction as accretive for both Kerogen and Hillwood. For Kerogen, it enables the successful value creation to-date to be captured, while accelerating distributions to LPs.  For Hillwood, this represents an opportunity to consolidate ownership of its flagship asset and gain further upside exposure. We wish Hillwood and the HKN team every success in the future.”

For more information: HKN Energy release