Riverstone Energy makes USD123m gain on US oil and gas investment

Riverstone Energy (REL) will make a $123m gain on the sale of a US oil and gas asset, more than doubling its initial investment.

REL's parent company Riverstone Holdings has agreed the sale of Denver- and Houston-based Rock Oil Holdings to fellow US-based producer and explorer SM Energy Company.

REL will receive $237m from the sale, which is more than double its initial $114m investment and 55% above its carrying value at the end of June of $152m.

The $123m gross profit will be subject to taxes and a performance fee upon closing of the sale, which is expected to occur in early October.