Venoco Inc., Denver, (NYSE: VQ) has filed to go ahead with an upstream MLP, Venoco Acquisition Co. LP, filing an S-1 to IPO up to 10.56 million units, for approximately $19.82 each for a total raise of $209 million on the New York Stock Exchange as VAC. Lehman Brothers, Citi and UBS Investment Bank are underwriters.
Venoco Inc. will provide the initial assets to the new MLP. Venoco Acquisition Co. GP LLC?is the general partner and will manage operations and activities in exchange for an initial 2% stake.
The company’s assets include a 38.5% average working interest in 325 gross producing wells in the South Ellwood, Dos Cuadras, West Montalvo, Beverly Hills West and Santa Clara Avenue fields in Southern California and the Hastings Complex in Brazoria County, Texas. Proved reserves as of Dec. 31, 2006, were 21.2 million BOE (86.2% oil, 81.1% proved developed). The assets also include five associated oil or gas pipeline systems.
Timothy Marquez is chairman and chief executive of Venoco and the general partner. William Schneider is president. Mark DePuy is senior vice president and chief operating officer. Timothy Ficker is chief financial officer.
Venoco Acquisition will use the proceeds to buy $117.5 million in securities as collateral for borrowings under its credit facility, reimburse Venoco for capex incurred prior to the IPO, and for working capital.