Riverstone Energy : Final results for the half year ended 30 June 2017

Riverstone Energy Limited

Final results for the half year ended 30 June 2017

London, 9 August 2017:Riverstone Energy Limited ('REL' or the 'Company') announces its Half Year Results for the 6-month period from 1 January 2017 to 30 June 2017.

Summary performance

Highlights

§ As of 30 June 2017, REL had a NAV per share of $19.74, representing a decrease of 36 cents or 1.8 per cent. versus NAV per share at 31 December 2016. On a Sterling basis, the NAV per share decreased by £1.13 or 6.9 per cent. compared with the end of 2016.

§ The decline in NAV was primarily driven by REL's second largest investment, Centennial, which is publicly traded and saw its shares share price decline from $19.72 at the end of December to $15.82 at 30 June 2017 as market sentiment for oil producers weakened. Strong performance at Three Rivers III, Meritage III and Liberty II helped offset this decline.

§ The Company invested a total of $142 million during the period, bringing net capital invested as of 30 June 2017 to $1,314 million, or 91 per cent of net capital available.

§ During the first half of 2017, REL reduced commitments to two companies, totaling $116 million, bringing net committed capital as of 30 June 2017 to $1,718 million, or 119 per cent of net capital available.

Commitments and Investments

During the year, the company made the following investments:

§ Invested $64 million in Canadian International Oil Corp.

§ Invested $26 million in ILX Holdings III LLC

§ Invested $16 million in Liberty Resources II LLC

§ Invested $10 million in Three Rivers Natural Resources Holdings III LLC

§ Invested $7 million in Canadian Non-Operated Resources LP

§ Invested $19 million to other investments including Eagle Energy Exploration, LLC, Carrier Energy Partners II LLC, Castex Energy 2014 LLC, Meritage Midstream Services III, L.P. and Origo Exploration AS

During the year, the Company reduced the following commitments:

§ Commitment reduction of $59 million to CanEra Resources III

§ Commitment reduction of $57 million to Origo Exploration AS

Manager Outlook

§ Global oil market volatility is likely to remain elevated as the market seeks equilibrium.

§ The Investment Manager believes that energy producers in low-cost basins with an oil-weighting will continue to outperform.

§ North American energy investments retain an advantage in a global marketplace due to low breakeven costs, short cycle times and high asset liquidity.

§ The portfolio's 14 active investments as a whole are well placed to offer investors resilience and growth in a variety of commodity price environments.

Richard Hayden, Chairman of Riverstone Energy Limited, commented:

'Today's results demonstrate REL's resilience as oil price volatility resumed in the first half of 2017. Despite a 14 per cent decline in the price of West Texas Intermediate, the net asset value declined by 1.8 per cent, reflecting continued operational successes and the portfolio's emphasis on low-cost basins.'

David M. Leuschen and Pierre F. Lapeyre Jr., Co-Founders of Riverstone, added:

'Riverstone continues to leverage its expertise across the energy value chain and capital structure to identify profitable opportunities for REL and its investors. The successes highlighted in today's results, such as Meritage III's confirmed expansion in Western Canadian midstream infrastructure and Sierra's recent historic oil discovery offshore Mexico, illustrate the strength of Riverstone's investment strategy despite the increase in oil price volatility.'

- Ends -

Riverstone Energy Limited's 2017 Interim Report is available to view at:www.RiverstoneREL.com.

The Investment Manager will host a conference call with investors at 09:00am BST today. Dial-in details are as follows:

Dial-in (UK): 0800 028 8438

Dial-in (Intl.): +44 (0) 203 107 0289

Conference ID: 59166774

2Q17 Quarterly Portfolio Valuation

Previously, on 26 July 2017, REL announced its quarterly portfolio summary as of 30 June 2017, inclusive of updated quarterly unaudited fair market valuations:

Current Portfolio

Realisations

About Riverstone Energy Limited:

REL is a closed-ended investment company that invests exclusively in the global energy industry, with a particular focus on the exploration & production and midstream sectors. REL aims to capitalise on the opportunities presented by Riverstone's energy investment platform. REL is a member of the FTSE 250 and its ordinary shares are listed on the London Stock Exchange, trading under the symbol RSE. To date, REL has made 17 investments spanning conventional and unconventional oil and gas activities in the Gulf of Mexico, Continental U.S., Western Canada, the U.K. North Sea, the Norwegian Sea, Mexico and credit.

For further details, seewww.RiverstoneREL.com

Neither the contents of REL's website nor the contents of any website accessible from hyperlinks on the websites (or any other website) is incorporated into, or forms part of, this announcement.

Media Contacts

For Riverstone Energy Limited:

Brian Potskowski

Natasha Fowlie

+44 20 3206 6300

Note:

The Investment Manager is charged with proposing the valuation of the assets held by REL through the Partnership. The Partnership has directed that securities and instruments be valued at their fair value. REL's valuation policy follows IFRS and IPEV Valuation Guidelines. The Investment Manager values each underlying investment in accordance with the Riverstone valuation policy, the IFRS accounting standards and IPEV Valuation Guidelines. The Investment Manager has applied Riverstone's valuation policy consistently quarter to quarter since inception. The value of REL's portion of that investment is derived by multiplying its ownership percentage by the value of the underlying investment. If there is any divergence between the Riverstone valuation policy and REL's valuation policy, the Partnership's proportion of the total holding will follow REL's valuation policy. There were no valuation adjustments recorded by REL as a result of differences in IFRS and U.S. Generally Accepted Accounting Policies for the period ended 30 June 2017 or in any period to date. Valuations of REL's investments through the Partnership are determined by the Investment Manager and disclosed quarterly to investors, subject to Board approval.

Riverstone values its investments using common industry valuation techniques, including comparable public market valuation, comparable merger and acquisition transaction valuation, and discounted cash flow valuation.

For development-type investments, Riverstone also considers the recognition of appreciation or depreciation of subsequent financing rounds, if any. For those early stage privately held companies where there are other indicators of a decline in the value of the investment, Riverstone will value the investment accordingly even in the absence of a subsequent financing round.

Riverstone reviews the valuations on a quarterly basis with the assistance of the Riverstone valuation committee as part of the valuation process.

The Audit Committee reviews the valuations of the Company's investments held through the Partnership, and makes a recommendation to the Board for formal consideration and acceptance.