Alpha Energy, Tennor Form $500M International Oil Venture

Houston-based oil and gas upstream company Alpha Energy has formed Alpha Energy International to drive its expansion outside the United States and sold a 65% stake in the new venture to Tennor Global LLC. Tennor, a holding and private equity firm focused on energy, energy technology and artificial intelligence, has agreed to arrange a $500 million funding facility for Alpha Energy International, enabling it to move quickly on acquisitions in selected countries, including Venezuela. The new company will be responsible for all of Alpha Energy's future activities and investments outside the USA, initially targeting mature producing fields and difficult-to-recover reserves. Alpha's leadership team will develop the assets and run operations, while Tennor, as majority shareholder, will support the venture through its network of relationships in the target countries. The announcement was distributed via Media OutReach Newswire.

Lars Windhorst, Founder of Tennor Global, said Alpha's team has a rare track record of turning around mature fields at scale, and Tennor's role is to open doors and provide capital to move quickly. Thomas Reed, CEO of Alpha Energy International and founder of Alpha Energy, said the combination of Alpha's technical and operating expertise with Tennor's financial support and deep knowledge of key international markets provides the basis for a new type of international oil company. Reed emphasized that more oil remains in existing conventional fields than has ever been produced, and since the late 1980s, improvements in technology and engineering have added more recoverable barrels from existing fields than the industry's total greenfield exploration success. Alpha is on a mission to acquire and modernise these legacy fields, with better recovery of the world's existing oil and gas resources as its fundamental value proposition.

Alpha Energy has a thirty-year history of conventional reservoir development and operations across more than sixty fields, primarily on the US Gulf Coast and the shallow-water shelf of the Gulf of America. Its principals have also operated at scale internationally. The company's COO spent more than a decade in Venezuela, including operatorship of a producing joint venture on Lake Maracaibo at over 100,000 barrels of oil per day. Reed, who will run Alpha Energy International from Houston, has 35 years of oil and gas experience with Yukos, RusPetro, JKX and Texas Petroleum Investment Company. The COO has 35 years of operations experience with Yukos and Gazprom, among others, most recently with the Venezuelan joint venture. Chris Hopkinson, CTO, has 38 years in the upstream business, including senior positions at Shell, Yukos, BG Group and KazMunayGas. All three built Alpha's proprietary Alpha Technical Center on their experience at Yukos, where the same performance engineering techniques added nearly one million barrels per day of production in four years with a net reduction in the total well count. The Technical Center covers subsurface evaluation, reservoir engineering, well design and facilities design. Alpha Energy International will recover production by optimising asset performance from the wells up, using a value-driven technical limit approach and current technologies. The company works alongside national oil companies, training and handing over to local engineers as it goes.