Ridgewood Energy is not letting $50-per-barrel oil shift its aim. FuelFix.com reports the energy company, which focuses on deep-water Gulf of Mexico exploration, closed a $1.9 billion private equity fund that it contends will still prove profitable.
Houston- and New Jersey-based Ridgewood says its new Ridgewood Energy Oil & Gas Fund III is its biggest yet and exceeded its initial $1.5 billion target.
As other companies slow down their expensive deep-water Gulf investments, Ridgewood says it can find and develop oil there for $20 a barrel or less. Competitors moving out of the space will actually help the firm, says Kenny Lang, Ridgewood president and chief operating officer.
“We have the ability to find and develop significant oil reserves for a very low cost per barrel,” Lang says in a prepared statement. “Our disciplined approach allows us to deliver strong returns across a range of oil price environments, and recent dislocation in the sector has created even more compelling opportunities for investment.”
Ridgewood was founded in 1982 but started focusing on the deep-water Gulf in 2008. Ridgewood also has managed significant capital from New York-based Riverstone Holdings since 2010.
Ridgewood’s last fund closed with $1.1 billion in early 2014.
