Skip to main content

Curzon

Regency intends to purchase a ~10% stake in Curzon Energy plc, a UK vehicle controlling two leases (20,000 acres) and five producing methane gas wells near Coos Bay, Oregon in the United States.

Key Facts

Gas assets located in the Pacific Northwest

Intended 10% equity investment in Curzon Energy Plc

Operated by Curzon Energy Plc

Curzon Energy is a UK based company currently finalizing the acquisition of gas assets located in the Pacific Northwest following a bankruptcy situation. The assets are to include 5 existing methane gas wells with significant acreage and development potential.  Multiple phases of development are planned.

Phase 1 (18 Months): Reentry and and produce from 5 x existing wells, drill 2 x new wells, add gas compression and water disposal infrastructure, connect to 12in regional pipeline – Midcase resource estimate of 2.75 BCF – Funded by IPO

Phase 2 (36 Months): Up to 58 New Developmental Wells – Midcase resource estimate of 22.4 BCF – Equity and Debt Funded

Phase 3: (< 5 Years): Up to 400 new wells – Funded by Debt

Regency is seeking to make an equity investment in approximately 10% of Curzon (in addition to the shares in lieu of 7% fee as mentioned below) following its planned IPO in early 2017 and looks for Curzon to fund development of the properties via a combination of debt and equity sources.

Regency has to date subscribed for 21,875 shares of Curzon for a total consideration of £175,000 via a pre-IPO funding round. Following final acquisition of the gas assets in the US, Curzon intends to seek a listing on the London market and Regency has agreed to subscribe for a further amount as a keystone investor of the planned IPO and as such ultimately expects to receive a board seat to represent its interests. Regency further expects to receive a 7% fee to be taken in shares of Curzon in consideration of a partial lock-up of its investment for one year.

Gas, widely considered the “fuel of the future”, continues to be the preferred fossil fuel in the United States having risen in 2015 to 33% of US power consumption with steadily increasing demand and relatively low levels of development activity and the Board of Regency considers Curzon an ideal access vehicle to this growth market.

Other Operations and Investments