StockMarketWire.com - Riverstone Energy said its manager had agreed for it to invest in Argentine oil and gas gathering and processing-focused Aleph Midstream.

Aleph had received a $103m commitment from funds affiliated to Riverstone, alongside commitments of $54m from Southern Cross Group, $45m from Vista Oil & Gas and around $3m the Aleph and Vista management teams.

The total commitment of around $205m was expected to be deployed over the next 24 months.

'Aleph will become the first midstream player focused on providing gathering, processing and evacuation services for oil and gas production of Argentina's Vaca Muerta shale play,' Riverstone said.

Upon the closing of the transaction, Aleph planed to start funding the construction of infrastructure necessary to provide gathering, processing, and evacuation midstream services to oil and gas producers in Vaca Muerta.

Starting in January 2020, Aleph planned to begin providing certain midstream services to support Vista's Bajada del Palo Oeste shale development in Vaca Muerta, as well as its existing conventional and future unconventional production in the Neuquina Basin, under a dollar-denominated long-term contract.

Aleph was currently negotiating credit facilities which it expects to close within the third quarter of 2019.




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