Avenrock Energy, a new energy company launched in Canada by Carlyle, has agreed to acquire Parallax Energy Operating from Carnelian Energy Capital.
Parallax is a Western Canadian exploration and production (E&P) company.
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The planned purchase will give Avenrock a substantial presence in Western Canada’s light oil sector, focusing on assets in Alberta’s East Shale Duvernay region.
Financial details of the deal were not disclosed.
Parallax, based in Calgary, holds a 75% working interest in a portfolio covering roughly 300,000 gross acres. Its operations are concentrated on light oil and natural gas liquids (NGL).
The company manages an extensive network of owned infrastructure including oil batteries, gas processing and water disposal facilities.
Parallax has a history of operating in the East Shale Duvernay, managing a group of producing assets and planning for additional development in the area.
Avenrock intends to further develop the newly acquired assets.
The transaction remains subject to regulatory approval and standard closing conditions.
Paul Smith will be appointed as CEO of Avenrock. He previously served as chief financial officer and board director at Vesta Energy before its acquisition by Parallax.
Smith also held finance leadership roles with Talisman and Wintershall Dea.
Smith said: “I am delighted to lead Avenrock and excited by the opportunity ahead. Significant progress has been made across the asset base and we see considerable potential to accelerate development and build a significant light oil business.
“With Carlyle’s deep energy expertise, we look forward to growing our position in the East Shale Duvernay and pursuing further opportunities across the portfolio.”
Funding for the deal is being provided by Carlyle International Energy Partners (CIEP), Carlyle’s global energy investment arm.
This transaction adds to the platform’s activity in Western Canada, which included supporting Cygnet Energy’s acquisition and planned delisting of Kiwetinohk Energy in 2025.
CIEP managing director Parminder Singh said: “Western Canada continues to offer compelling opportunities to invest behind high-quality energy businesses with significant long-term potential.
“We are pleased to establish Avenrock and partner with Paul, whose deep knowledge of the asset and experience in the region will be important as we look to scale the platform.
“We look forward to bringing Carlyle’s deep sector expertise and global resources to support continued investment in the portfolio, drive operational excellence and capture the opportunities we see across the region.”
BMO Capital Markets served as exclusive financial adviser to Carlyle and Avenrock, while Torys acted as legal adviser on the transaction.
