12 Mar 2014

Kerogen Capital invests in Twinza Oil

Kerogen Energy Fund, L.P. (“Kerogen”) has made a commitment to subscribe A$30 million (approximately US$27 million) for new shares in Twinza Oil Limited (“Twinza” or the “Company”). Twinza is a private Asia Pacific-focused exploration and production company. It was incorporated in Australia in 2004 and founded by Bill Clough, the Clough Family Trustees (collectively the “Clough Family”) and the management team. Kerogen will become the second largest shareholder in Twinza with an equity interest of up to 29% behind the Clough Family.
Twinza has established an attractive portfolio of majority owned and operated positions in the Asia Pacific. Twinza’s current portfolio comprises:

  • Australia – 100% operating interest in the ATP 784P licence in the prolific Cooper Eromanga Basin in Queensland, a high potential oil and gas shale play (Toolebuc oil shale) with conventional leads. Due to significant conventional production in the basin, infrastructure and market access routes are well established. The Company has estimated potential unconventional oil and gas in place of 2 bnbbl and 3.7 Tcf;
  • Papua New Guinea (“PNG”) – 90% operating interest in PPL 328, a shallow water gas and condensate appraisal project with estimated recoverable resources of approximately 50 mmbbl of liquids and 300 Bcf of gas (together around 100 mmboe); and
  • Thailand – 50% operating interest in L7/50 and L13/50, two adjacent onshore exploration blocks located in an extension of the successful gas producing basin in North-Central Thailand, with unrisked prospective gas resources of up to 1.7 Tcf.

Twinza’s first-rate management team has around 140 years of combined upstream oil and gas experience, the majority of which has been in the Asia Pacific region with Premier Oil, Coastal Energy and Amerada Hess in countries including Australia, Indonesia, Papua New Guinea, Thailand, Vietnam and Myanmar. Headed by Huw Evans, former VP Exploration and New Ventures with Premier Oil Asia, the management team has a successful track record of discovering and commercialising sizeable assets in the Asia Pacific region such as Sinphuhorm in Thailand, the Natuna Gas Project and the Ujung Pangkah field in Indonesia.
Kerogen’s investment case is underpinned by the highly attractive Pasca A liquids-rich gas discovery, located in shallow water in the Gulf of Papua of PNG. The Exxon-led US$19 billion 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. 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. 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.
Kerogen will appoint two directors to the Twinza Board of Directors and will also have two representatives on a newly-formed Technical Operating Committee.
Kerogen Capital’s Executive Chairman, Mr. Ivor Orchard, commented:

“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. We look forward to working with the Twinza team as a committed partner and to assisting the Company in developing its attractive portfolio of assets.”
Twinza’s Chairman, Mr. Bill Clough, commented:
“We are very pleased to welcome Kerogen as a major shareholder. Kerogen and Twinza are
closely aligned on the strategy for advancing Twinza’s business portfolio in the Asia Pacific
region. With the backing provided by Kerogen, a world class international oil and gas industry fund, Twinza will have greater access to capital and networks required to move the assets up the development curve.”

Twinza investment press release