Riverstone sells portion of interest in Pipestone Energy

US private equity firm Riverstone has sold part of its stake in Pipestone Energy Corp, a Calgary-based oil and gas exploration and production company, to an unidentified investor. The sale, which generated proceeds of more than $53 million, reduced Riverstone’s interest in Pipestone to about 18.5 percent of common shares.

PRESS RELEASE

CALGARY, AB, Feb. 7, 2022 /CNW/ – On February 4, 2022, Riverstone V REL CNOR LP (“Riverstone”) sold 11,719,357 common shares in the capital of Pipestone Energy Corp. (the “Company”) to a third party accredited investor in a block trade at a cash price of CAD$4.55 per common share (the “Sale Transaction”). The total gross proceeds from the Sale Transaction was CAD$53,323,074.35.

The 11,719,357 common shares in the capital of Company sold by Riverstone (the “Subject Shares”) represent approximately 6.1% of the outstanding common shares in the capital of the Company (“Common Shares”) that Riverstone understands to be issued and outstanding as of the date of the Sale Transaction. Immediately prior to the Sale Transaction, Riverstone owned 47,159,714 Common Shares, representing approximately 24.6% of the Common Shares that Riverstone understands to be issued and outstanding as of the date of Sale Transaction. Following the Sale Transaction, Riverstone owns 35,440,357 Common Shares, representing approximately 18.5% of the Common Shares that Riverstone understands to be issued and outstanding as of the date of Sale Transaction.

The disposition of the Subject Shares by Riverstone was made for investment reasons. Riverstone intends to distribute the proceeds from the Sale Transaction to its investors. Subject to applicable law, Riverstone may, from time to time, acquire additional Common Shares and/or other equity, debt or other securities or instruments of the Company (collectively, “Securities”) in the open market or otherwise, and reserves the right to dispose of any or all of its Securities, including the Common Shares, in the open market or otherwise at any time and from time to time, depending on market conditions, the business and prospects of the Company and other relevant factors.