HitecVision Private Equity has purchased a majority stake in Core Energy, a start-up oil and gas company, providing an equity line of $150 million in the deal.
Core Energy will seek to acquire interests in producing fields on the Norwegian continental shelf, where the company has applied for pre-qualification as a license partner.
The founders of Core Energy will continue as shareholders in the company. HitecVision made the investment from its fifth fund, which closed on $800 in million in February 2008, surpassing its $600 million target. With the acquisition of Core Energy, HitecVision has increased the amount of committed capital from Fund V to $670 million
The deal for Core Energy follows the firm’s $120 million acquisition of Spring Energy Norway in 2008.
“Spring [Energy] was exploration and this is more like production exploitation,” HitecVision senior partner Harald Vabo told PEO. Vabo added that HitecVision is looking at oil and gas opportunities on the Norwegian fields, but also elsewhere.
Vabo joined the firm as of 1 November. He was previously the founder and chief executive officer of oil company Wintershall Norge, formerly Revus Energy, one of HitecVision’s first investments back in 2003.
HitecVision makes buyouts and growth capital investments from a capital base of $1.4 billion.