Caelus Energy Alaska LLC ("Caelus") and affiliates of Apollo Global Management, LLC (NYSE:APO) (together with its consolidated subsidiaries, "Apollo") have formed a strategic partnership to invest in oil and gas properties in Alaska. Today Caelus has closed its first transaction, the acquisition of Pioneer Natural Resources' Alaskan oil and gas business, for $300 million in cash, subject to adjustments, plus other consideration. Caelus, headquartered in Dallas, TX, has an executive management team led by Chief Executive Officer James C. Musselman and a technical team led by Chief Technical Officer Kenny Goh. Among other things, Mr. Musselman previously led Kosmos Energy, which discovered the 1 billion-plus barrel Jubilee field off the West African coast, and Triton Energy, which was acquired by Amerada Hess for $3.2 billion. Apollo funds have the opportunity to invest up to $1 billion in Caelus (in the aggregate) to develop the company's existing assets and to pursue acquisitions or other additional investments.
Mr. Musselman said, “We are excited to be working with Apollo to build a world-class, Alaska-focused independent E&P business, beginning with the acquisition Pioneer’s Alaskan oil and gas operations. The current Pioneer Alaska team has the experience to grow and develop the tremendous resource potential they have identified. We believe Alaska offers an enormous geologic opportunity, coupled with a favorable regulatory environment for independent oil and gas companies.”
Greg Beard, Global Head of Natural Resources and Senior Partner at Apollo, said, "We look forward to working with Jim and the rest of his team as we seek attractive investment opportunities in resource-rich Alaska.” Geoffrey Strong, Partner at Apollo, added, "We are confident that Caelus can efficiently develop the existing reserves it is acquiring while building a first-rate oil and gas company through add-on acquisitions and new discoveries. We are delighted to have the opportunity to invest alongside Jim and his team."