Venari Resources raises $1.3b in PE financing

The oil and gas exploration company has raised a new round of financing backed by some of private equity's biggest names

Texas-based Venari Resources, an oil and gas exploration company backed by Warburg Pincus has raised $1.3 billion in equity commitments, according to a statement.

Venari’s management and existing private equity and investment firms Warburg Pincus, Kelso & Company, Temasek and The Jordan Company, were joined by several new investors, including GIC, Singapore’s sovereign wealth fund, and BlackRock Private Equity Partners for the second financing effort.

Sources familiar with the fundraise say that Warburg led the round.

The capital raise was first made public in July when, according to Securities and Exchange Commission documents, Venari sought to raise up to $1.49 billion.

To date, Venari has raised $2.4 billion of equity commitments from its investors, including a $1.1 billion line of equity announced when the Company was formed in May 2012.

The funding will further appraise and develop the Shenandoah and Coronado discoveries and execute high-impact exploration program. The company made significant discoveries in both areas last year.

Venari is the twelfth largest leaseholder in the deepwater Gulf of Mexico with a deep, multi-year drilling program covering 55 prospects across 190 leases.

Last week, Warburg Pincus announced another investment of $600 million in another energy company – Texas-based Zenith Energy. The company aims to build oil and gas terminals worldwide. Warburg will provide capital for terminals in Africa, Europe, and Latin America.