Kerogen Capital announces completion of Zennor Petroleum sale to NEO Energy

Kerogen Capital (“Kerogen”) and Zennor Petroleum Limited (“Zennor”) are pleased to announce today the completion of the previously announced sale of Zennor to NEO Energy Upstream UK Limited (“NEO”) who are backed by HitecVision for a total consideration of up to $625 million, including deferred and contingent payments.

Kerogen and Zennor were advised on the sale by Citigroup Global Markets Limited as their financial advisor and CMS Cameron McKenna Nabarro Olswang LLP as their legal advisor.

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

We are pleased to have partnered with the Zennor team to create a business that has significant cashflow generation potential as well as further growth optionality. We would like to thank the Zennor team for their immense contributions during this journey. We deeply value the relationships we have developed with the team over the past years and we wish them, as well as NEO, every success going forward.

Martin Rowe, Managing Director of Zennor Petroleum, commented:

Today is another step along the road for the Zennor team, and I am heartened by the number of us who have decided to join NEO. We are pleased to have delivered a profitable monetisation for our shareholders and would like to thank Kerogen for their valuable support over the last 6 years. I would also like to thank our lenders, the OGA, our key contractors and our license partners and operators for their ongoing help and support in developing our portfolio and delivering this transaction.

Pandion Energy: Launching Wellify, instant access to the subsurface!

Pandion Energy is pleased to officially launch Wellify, a new digital visualisation tool for analysis of geochemical and mineralogical data from drill cuttings. The cuttings data contain valuable information for companies exploring for oil and gas and can further be utilised to improve efficiency and safety in drilling operations. The Wellify tool can also potentially be used to identify reservoir zones suitable for CO2 storage.

Wellify is the first product coming out of Cuttings Insight, a non-commercial collaboration project initiated by Pandion Energy in 2020, with DNO Norge AS and Spirit Energy Norway AS as partners and Itera ASA as technical provider. The launch of Wellify marks the end of a successful development and test period. The product is now daily in use with all three companies, demonstrating the rapid acceptance of new digital solutions when user driven. 

The idea behind Wellify was to provide the geoscientists with easy access to the high-resolution photos and mineral analysis coming from another joint industry collaboration project, namely the Released Well Initiative (RWI). With cuttings samples from more than 1,900 wells on the Norwegian continental shelf being digitalised, on average 300 – 400 samples per well, this project has created more than two million files and 30 terabytes of data.  

Bente Flakstad Vold, VP Exploration & Appraisal at Pandion Energy says:

Cuttings data has traditionally been an under-utilized and hidden data type. Wellify makes the digital cuttings data accessible and brings new valuable and insightful information about the subsurface.

Wellify provides instant and dynamic access to the photos and data from the Released Well Initiative. As all files are streamed through a cloud-based solution, users get immediate access without having to download large quantities of RWI data sets or to install and integrate a new software into existing systems. 

The project is currently enrolling new members and will enter the next development phase, further investigating additional functionality and potential uses of the data set from the Released Well Initiative.  

For more information: Wellify

Kerogen joins the New Zero Asset Managers Initiative

Kerogen Capital Limited (“Kerogen”) is delighted to be a new signatory of the Net Zero Asset Managers initiative today which is backed by a total of 128 global investors with over $43 trillion in assets. 

The Net Zero Asset Managers initiative is an international group of asset managers committed to supporting the goal of net zero greenhouse gas emissions by 2050 or sooner, in line with global efforts to limit warming to 1.5 degrees Celsius; and to supporting investing aligned with net zero emissions by 2050 or sooner.

Jason Cheng, CEO & Managing Partner of Kerogen, said:

Climate change is undoubtedly the most pressing issue of our time and as an energy-focused private equity fund we understand that there the energy sector requires complete transformation to meet Net Zero. As governments work to develop net zero carbon regulation, it is important for the private sector to take action now. The actions we take today have a multiplier effect in the future and have the potential to accelerate the path to achieving net zero. Our approach to net zero carbon builds on our carbon light investment strategy, our commitment to transparent climate related reporting and carbon reduction initiatives, as well as ensuring we capture the wealth of new investment opportunities from the energy transition. Kerogen Capital is committed to the Net Zero Asset Managers Initiative and look forward to working among other leading asset managers on the journey of achieving net zero.

Yeager Energy acquires company ‘Warmtebedrijf Westland’

Dutch Geothermal Energy company Yeager Energy is pleased to announce that it has acquired local company ‘Warmtebedrijf Westland’.

The strategy of Yeager Energy (“Yeager”) is to develop and operate a portfolio of geothermal energy projects and (smart) district heating networks to benefit the greenhouse horticulture sector, the industry as well as the built environment (residential users). Yeager aims to provide reliable, costcompetitive sustainable heat in a safe and responsible manner. The acquisition of ‘Warmtebedrijf Westland’ means a further step in realising this strategy. 

The business model of Yeager includes operating the entire heat value chain – from ‘Source to Sales’, taking a portfolio approach, pursuing both organic and inorganic growth opportunities and working in partnerships. At Yeager Energy we recognise our responsibility for sustainable development and we therefore strive to protect the health, safety and wellbeing of all those involved in our activities, as well as the environment we operate in.

The objective of ‘Warmtebedrijf Westland’ is to deliver a bundle of products and services for the greenhouse horticulture sector including sustainable heat such as geothermal heat, CO2 gas as a feedstock for the greenhouses, irrigation water and glass-fibre data links. In addition ‘Warmtebedrijf Westland’ is seeking to expand its sustainable heat business to the built environment (residential users).

Warmtebedrijf Westland participates in the geothermal project ‘Aardwarmte Delfland’ in the town ‘De Lier’, south of The Hague, jointly with partners ‘Shell Geothermal B.V.’ and ‘A. de Bruijn en Zn. B.V.’ and ‘Harting Holland B.V.’, two large greenhouse horticultural companies. First heat production is expected in Q4 2023.

Yeager has recently received a significant investment from energy focused investment fund Kerogen Capital (“Kerogen”) to support and grow its geothermal energy and district heating business in the Netherlands and Europe.

For more information: Yeager Energy press release 

Kerogen completes realisation of its investment in HKN Holding

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

Kerogen Capital invests in geothermal companies GTML in Norway and Yeager Energy in the Netherlands to drive decarbonisation of heat

Kerogen Capital (“Kerogen”) is pleased to announce an initial investment in Geothermal Energy Nordic AS (“GTML”) and Yeager Energy B.V. (“Yeager Energy”), two companies aiming to develop and operate geothermal heating projects in Norway and the Netherlands, respectively. Post investment, Kerogen will have a majority shareholding in both companies.

GTML, based in Norway, will develop and operate renewable heat projects for both commercial and residential customers from deep energy wells, using a proven and cost-competitive concept of circulating water in closed-loop single well systems.

Yeager Energy, based in the Netherlands, is focused on developing and operating conventional geothermal producer-injector doublet systems and district heating networks for application in residential, industrial and the greenhouse horticulture sectors.

Geothermal is a predictable, non-intermittent and carbon free source of renewable heating that allows to displace the more traditional and carbon intensive heating based on gas and coal power. Furthermore, geothermal heating frees up electricity power and enables it to be redirected to other decarbonisation uses, as part of the growing energy transition demand for electrification.

Tushar Kumar, Partner at Kerogen Capital, commented:

“We are very excited about investing in geothermal energy to drive forward decarbonisation of heat for commercial, industrial and residential users. Baseload heating remains a hard-to-abate sector and we are pleased to play our part in progressing technologies and projects that help in getting to Net Zero carbon target in line with the Paris Climate Agreement. Geothermal skill sets overlap with our in-house expertise in areas including geological modelling, drilling and project execution. We believe that the timing is opportune, given the current industry, macro and regulatory tailwinds.

 We are confident that the talented management teams at GTML and Yeager Energy will successfully execute on their strategies and we look forward to supporting their growth.”

Thor Erik Musæus, CEO of GTML, commented:

“We are convinced that the timing of rolling out geothermal energy on a large scale from deep energy wells is excellent, given the current strong demand for local and renewable energy. We see numerous interesting opportunities in the market today. Being backed by a financially strong investor like Kerogen, will enable us to capture these market opportunities and to build a valuable and sustainable energy company.”

Robin Hamersma, Managing Director of Yeager Energy, commented:

“We are very pleased with the confidence that Kerogen places in Yeager Energy and welcome Kerogen as an investor. This will allow us to execute our strategy and expand our business in the Netherlands and beyond. We believe that combined strength of Yeager Energy and Kerogen will deliver a significant contribution to the (heat) energy transition in the Netherlands.”

For more information: Kerogen Capital press release, Yeager Energy press release

Kerogen Capital converts interest into BW Ideol listing

Kerogen Capital (“Kerogen”), together with Ideol SA (“Ideol”) and BW Offshore (“BWO”), is pleased to announce the creation of BW Ideol, a new platform focused on floating offshore wind. The larger platform enables a stronger position to capture the sector’s growth potential as a technology and EPC provider, and developer and operator of wind power projects.

Since Kerogen’s investment in 2018, Ideol has successfully demonstrated its cost-effective floating offshore wind solution in full-scale projects in France and Japan, forged multiple creative strategic partnerships, expanded its presence internationally, and developed a pipeline of commercial-scale floating offshore wind projects.

As a part of the contemplated private placement and subsequent admission of BW Ideol to trade on Euronext Growth Oslo under the ticker symbol “BWIDL”, Kerogen has committed to roll NOK118 million of its interest in Ideol into the listing.

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

“Since our investment in Ideol, we have seen increased interest in commercial-scale floating offshore wind projects from both large utility and established oil & gas players, especially in Europe and Asia.

We believe Ideol’s proven and cost-effective technology, combined with BWO’s decades of experience operating large floating structures across the globe, will be a key enabler to unlock utility-scale offshore wind.

The platform removes water depth constraints and has the potential to meaningfully contribute to the energy transition. We have been thrilled to partner with the Ideol team over the past years and pleased to have BW Offshore join forces with Ideol to build a strong floating offshore wind platform.”

Paul de la Guérivière, CEO and Co-founder of Ideol, commented:

“Our established position in floater design and engineering, coupled with BW Offshore’s track-record of project development and deep-water expertise, provides a strong platform for accelerated growth as a leader in floating offshore wind technology and growing developer of offshore renewable energy projects. Kerogen has played a strategic role in defining an ambitious strategy for Ideol and has always actively supported our development. We are very honoured of their reiterated support.”

Marco Beenen, the CEO of BW Offshore, commented:

“We see solid opportunities for developing offshore power production solutions to drive energy transition at a global scale. We are combining our four decades of offshore development, financing, and operational experience with Ideol’s proven floating offshore wind technology and expertise. Together we are creating a champion in this emerging market with significant long-term growth and value creation potential.”



Kerogen Capital announces sale of Zennor Petroleum to NEO Energy

Kerogen Capital (“Kerogen”) and Zennor Petroleum Limited (“Zennor”) are pleased to announce that Kerogen has reached an agreement with NEO Energy Upstream UK Limited (“NEO”) and HitecVision for the sale of Zennor for a total consideration of up to $625 million, including deferred and contingent payments. The transaction completion is subject to customary regulatory approvals.

Since Kerogen’s initial investment in 2015, Zennor has transformed from an early-stage exploration company into a full-cycle E&P player in the UK North Sea through successful appraisal and development of the Finlaggan field, two separate producing asset acquisitions and multiple licence awards in the offshore licensing rounds. In January 2021 Zennor and Kerogen announced its Net Zero Carbon Strategy.

Zennor’s deep technical expertise and entrepreneurial spirit enabled it to successfully identify attractive opportunities and create material value by delineating and significantly expanding its reserves and resources base, by implementing commercial and operational optimisation initiatives, and by successfully executing accretive bolt-on acquisitions. The Zennor team will be integrated into the NEO business at completion.

Zennor has been a very active and collaborative partner working closely with other operators in the UK North Sea to maximise the recovery of high value barrels and unlocking future growth opportunities.    

Today, Zennor’s portfolio of c.40 mmboe of net 2P reserves and more than 90 mmboe of net 2C resources is comprised of non-operated interests in the Mungo & Monan, Britannia, Bacchus and Cormorant East producing fields, a 100% operated interest in its flagship Finlaggan development project and interests in several near-field discoveries. Zennor’s net production is expected to exceed 20,000 boepd in Q4 2021, once Finlaggan is onstream.

Kerogen and Zennor were advised on the sale by Citigroup Global Markets Limited as their financial advisor and CMS Cameron McKenna Nabarro Olswang LLP as their legal advisor.

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

“Together with the Zennor team, we have built a portfolio of long-life, high-margin assets with significant further growth potential. With the Finlaggan development nearly complete, we believe this is an opportune time to monetise our investment and realise an attractive outcome for our investors, while leaving room for NEO to deliver the next phase of portfolio growth in synergy with their existing assets.

We deeply value the relationship developed with the Zennor team over the past years and we wish them every success going forward as part of the NEO organisation where, we are confident, they can continue to deliver growth at a larger scale.”

Martin Rowe, Managing Director of Zennor Petroleum, commented:

“We are pleased to be able to deliver an attractive return for our shareholders and we would like to thank Kerogen for their support over the last 5 years. Our relationship with Kerogen has been very collaborative and their support in strategic, financial and technical matters has been instrumental in growing Zennor’s business. We are excited to see our joint efforts culminating in a successful monetisation of Zennor’s portfolio in a transaction with one of the leading players in the UK North Sea.

This transaction is a testament to the knowledge, experience, and hard work of the Zennor team that I have had the privilege to work with over these past years. The portfolio of high-quality assets that this team has identified and secured is the reason we have been able to deliver this transaction. Their ability is further amplified by the fact that the Zennor team will be integrated into the NEO business at completion. I would also like to thank our lenders, the OGA, our key contractors and our license partners and operators for their ongoing support in developing and growing our portfolio.”

Kerogen Capital Outlines Net Zero Carbon Strategy and Achieves Carbon Neutrality across the Fund and its Two Largest Controlled Portfolio Companies

Kerogen Capital (“Kerogen”), the independent private equity fund manager specialising in the energy sector, supports the goal of the Paris Agreement to achieve a net zero global economy and is pleased to announce the launch of its Net Zero Carbon Strategy.

This strategy includes Kerogen’s commitment to carbon neutrality across its operations for Scope 1 and 2 emissions.  In 2020, it achieved carbon neutrality at:

In addition, Kerogen has committed to making all future fund vintages and investments carbon neutral.

This has been achieved initially by offsetting CO2 emissions through programmes that are aligned with the UN Sustainable Development Goals.

Kerogen recognises that carbon offsetting is not the long-term solution to climate change and must be combined with action to reduce the emissions intensity operations.

A comprehensive strategy to address climate risks and carbon neutrality will increasingly be required for all fund managers.  Our strategy is outlined in the Net Zero Carbon Strategy document. It involves a number of key priorities including:

Adhering to a carbon light investment strategy

This includes climate related criteria in the screening of new investments; during our ownership providing stewardship around climate related strategy including plans to reduce carbon emissions and ensuring transparency, reporting and governance structures are in place to effect the strategy; and finally factoring in the potential for repurposing and recycling of infrastructure to facilitate development of hydrogen, CCS, offshore wind and renewable electricity projects.

Reducing the carbon intensity of our operations by 50% by 2030

Kerogen has already started implementing measures to support carbon reduction in the portfolio and we are targeting a 50% reduction in carbon intensity from our producing portfolio by 2030. The reduction is expected to be achieved from a combination of decarbonisation initiatives, including: energy consumption efficiency; digitalisation and optimisation of facilities; electrification; and where relevant solutions for flaring, venting and fugitive emissions.

Committing to transparent climate related reporting

Kerogen supports the Task Force on Climate-related Financial Disclosures (TCFD) and aims to align its disclosure with the recommendations set forth by TCFD from 2021.

Impactful offsetting of our remaining carbon emissions

We have made a commitment to use high quality carbon offsets for any remaining short-term emissions to achieve carbon neutrality immediately.

Advocating for industry change

Kerogen is committed to working with its investee companies, their joint venture partners, its peers, regulators, lenders, investors and other stakeholders to promote and accelerate decarbonisation.

Jason Cheng, Co-founder and Chief Executive Officer of Kerogen Capital, said:

“Climate change is undoubtedly the most pressing issue of our time and as an energy-focused private equity fund we understand that there is no ‘business as usual’ going forward for our industry. A path to a net zero society requires decarbonisation of the energy industry as well as growth to meet rising demand across the globe. At points of change like this, there will be new investment opportunities in areas like carbon capture and storage, hydrogen, renewable energy and digitalisation.

Our approach to net zero carbon builds on our carbon light investment strategy and climate related investment exclusion list that we introduced when we removed coal from our strategy in 2011. We are delighted to be one of the first private equity funds to have achieved carbon neutrality from 2020 at the manager level, the fund level and at our two largest controlled portfolio companies, Zennor Petroleum and Pandion Energy – one of the first E&P companies operating in the North Sea to have achieved this target.

As governments work to develop policies and regulation to achieve a net zero carbon economy by 2050, it is important for us to be responsible by taking action now. The actions we take today have a multiplier effect in the future and have the potential to accelerate the path to achieving net zero. We look forward to working with our partners, regulators, lenders and investors to enable high impact initiatives to enable this transition to net zero as swiftly as possible.” 


Kerogen is committed to delivering a carbon neutral future, and would welcome the opportunity to collaborate with our peers and industry leaders to do this.

Please contact us at

Pandion Energy awarded five APA licenses

Pandion Energy has been awarded five licenses under the 2020 Norwegian APA (Awards in Pre-defined Areas) Licensing Round on the Norwegian Continental Shelf.

The APA award was announced by the Minister of Petroleum and Energy, Tina Bru on Tuesday 19 January. For more information about the APA 2020 Licensing Round see Ministry of Petroleum and Energy’s website.

Pandion Energy has been awarded the following licenses:

VP Exploration and Appraisal of Pandion Energy, Bente Flakstad Vold comments:

“In addition to expanding our exploration portfolio we have secured strategically important acreage surrounding the discoveries Pandion has taken part in during the past year, further strengthening our position in areas where we see additional upside potential.”

For more information: Pandion press release