24 Jul 2012

Final closing of Kerogen Energy Fund, L.P.

NEW YORK–Forbes Private Capital Group (Forbes) announced today the final closing of Kerogen Energy Fund, L.P. (“the Fund”) an energy private equity fund managed by Hong Kong-based Kerogen Capital (“Kerogen”) with capital commitments in excess of $1.0 billion. Forbes managed and advised on the global distribution of the fund. Forbes is the wholly-owned distribution business of G2 Investment Group (“G2”).
The Fund provides growth and development capital to junior upstream oil and gas companies focused on international emerging oil and gas basins and unconventional assets. 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. The Fund will primarily invest in geographies of strategic importance to Asian demand, particularly China, which is expected to account for over 50 percent of the net increase in world oil demand over the next 25 years according to the International Energy Agency.
Todd Morley, founder and chairman of G2 Investment Group, commented, “Energy is a major focus for G2 as we believe the global energy markets are technically and fundamentally mispriced. The world has run out of easily accessed oil, and surging demand in Asia will require new and expanding capital to invest with A+ management teams. We are excited to partner with Kerogen on one of the few private equity energy funds focused on opportunities outside North America. Kerogen’s specialized industry experience, regional focus and relationships provide significant competitive advantages for our investors.”
Jason Cheng added, “We’re very pleased with the positive reception to Kerogen by Limited Partners internationally. We believe the Fund is well-positioned to capitalize on many attractive investment opportunities within our pipeline of internationally focused junior upstream companies.”
Kerogen has already completed two investments including:

  • AJ Lucas Group Limited (“AJ Lucas”), a leading drilling services company in Australia that holds a 43% interest in Cuadrilla Resources Holdings Limited (“Cuadrilla”). 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; and
  • NewAge (African Global Energy) Limited (“NewAge”), 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.

“Investors participating in the Fund include some of the largest endowments and foundations in the United States, family offices, an affiliate of a Middle Eastern sovereign wealth fund, funds of funds and Asian investors in Singapore and China” said David Conrod, managing partner of G2 and president of Forbes Private Capital Group.
Forbes Private Capital Group announces final closing of $1 billion Kerogen Energy Fund press release