Rock Energy Resources has entered into a Memorandum of Understanding ("MOU") with an offshore fund for financing the acquisition of its investment into distressed opportunities in oil and gas.
The MOU contemplates the formation of a Joint Venture in which Rock Energy will own 29% and the offshore partner will own 71%. The offshore fund in this JV will issue up to $500 million in potential financial backing through a series of separate JVs. The MOU contemplates execution of all definitive documentation within the next thirty days.
Commenting on the opportunity, Rocky Emery, Rock Energy's Chairman and CEO stated, "This Joint Venture is significant not only as to its potential magnitude, but also its timing. We are in the midst of a ferocious commodity price cycle downturn. Not only E&P companies, but mezzanine and conventional lenders to the industry are upside down on their credits.
"We believe we can structure case-by-case transactions that will prove mutually beneficial to all constituent parties. We are also very pleased at this vote of confidence in our highly qualified management team that brings the complimentary skill sets needed to screen, structure and operate oil and gas projects."
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