Private equity firm Apollo Global Management (APO) and Blackstone Group’s credit arm are considering divesting Canada-based Ridgeback Resources, reported Reuters, citing four sources familiar with the development.

A potential sale of the Canadian oil and gas producer could be valued at more than C$1bn ($765.58m).

The move comes amid surging global oil price, which reached multi-year highs in recent months because of increased demand and Russia’s invasion of Ukraine. To capitalise on the surging prices, energy firms have been considering asset sales.

To manage the sale process of Ridgeback, the private equity investors have hired two undisclosed investment banks, the report says.

The publication cited sources as saying that there is no certainty that Ridgeback will be offloaded. The firm’s assets could be divested in several transactions.

In 2016, Apollo and Blackstone formed Ridgeback to acquire bankrupt Canada-based oil firm Lightstream Resources for C$1.35bn.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

Ridgeback is the largest Canadian remaining upstream asset for Apollo, and the only production asset in the North American country for Blackstone Credit.

Ridgeback holds assets that cover a total area of more than 535,000 net acres in the Alberta, Saskatchewan, and British Columbia provinces. 

As per the marketing document seen by Reuters, Ridgeback is expected to have a production capacity of 22,619 barrels of oil equivalent per day (boepd) this year and 24,532boepd in 2023.

Earlier this year, Apollo unveiled a sustainable investing platform to invest $50bn over the next five years in decarbonisation and energy transition opportunities.

Over the last 18 months, Blackstone offloaded US oil and gas producers GeoSouthern, and Guidon Operating. It is also focusing on green investments.