Carlyle Acquires Canadian Duvernay Oil and Gas Assets with Approximately 20,000 Barrels of Oil Equivalent per Day

en.Wedoany.com Reported - On September 14, Avenrock Energy, a newly established Canadian energy company backed by global investment firm Carlyle, signed an agreement to acquire Canadian oil and gas producer Parallax Energy Operating from Carnelian Energy Capital. Parallax primarily develops light oil resources in the East Shale Duvernay in Alberta, and currently holds a 75% working interest in the relevant oil and gas assets, which have total production of approximately 20,000 barrels of oil equivalent per day. The transaction remains subject to customary closing conditions and regulatory approvals.

Parallax holds oil and gas assets covering approximately 300,000 gross acres in the East Shale Duvernay, with a production mix primarily consisting of light crude oil and natural gas liquids, and also possesses supporting infrastructure including oil and gas gathering and transportation stations, natural gas processing facilities, and produced water disposal facilities. Upon completion of this transaction, Avenrock will become the primary operating platform for these assets and will continue to advance development of the existing light oil assets.

The two parties did not disclose the transaction price. People familiar with the matter placed the enterprise value of the transaction at approximately CAD 1 billion. Carlyle's investment funds will come from the Carlyle International Energy Partners platform, which focuses on investments in the global energy sector. Paul Smith will serve as Chief Executive Officer of Avenrock.

This acquisition corresponds to Parallax's remaining 75% working interest. In May of this year, Northern Oil and Gas reached an agreement with Parallax to acquire a 25% non-operated working interest in the same Duvernay assets for an initial transaction price of CAD 350 million, of which approximately CAD 237 million was paid in cash and approximately CAD 113 million in stock, with contingent consideration of up to CAD 25 million. The 25% interest transaction was completed in June, with Parallax continuing to serve as operator of the assets.

Northern Oil and Gas previously disclosed that its acquired 25% interest is expected to correspond to production of approximately 4,000 barrels of oil equivalent per day in 2027, of which approximately 80% is crude oil, and covers approximately 75,000 net acres and approximately 500 gross drilling locations. Based on the same asset interest structure, Parallax is currently selling the remaining 75% working interest to Avenrock.

Parallax's existing asset base was formed through prior mergers and acquisitions. In December 2024, after completing the acquisition of Vesta Energy, the company's operating production exceeded 17,000 barrels of oil equivalent per day, of which approximately 75% was light oil, and it controlled approximately 230,000 net acres in the Duvernay. Subsequent asset development and interest adjustments brought the currently disclosed total land position to approximately 300,000 acres.

This is Carlyle's second major oil and gas platform investment in Canada within the past 12 months. In 2025, Carlyle-backed Cygnet Energy completed the acquisition of Kiwetinohk Energy for approximately CAD 1.4 billion and took it private. Upon completion of the Parallax transaction, Carlyle will add a new operating platform in Western Canada centered on Duvernay light oil development.