AFR: Real Energy draws bigwigs

Real Energy draws bigwigs

• Cooper Basin oil and gas junior Real Energy Corporation is believed to have held talks with private equity giant KKR & Co regarding a potential cornerstone investment.

As fund managers and bankers get set for the long-anticipated wave of consolidation in the Cooper, it's understood Real has found itself in the sights of KKR, however is yet to be able to agree to any deal.
The interest comes as the $40 million-capped Real announced it had increased acreage in the Cooper Basin, which managing director Scott Brown said should take it one step closer to developing a tier-one gas project in the region.
Equity markets, though, are yet to be impressed. Real's shares have halved in the past four months.
Cooper Basin consolidation appears on the cards, after years of posturing by the major players. Seven Group has triggered the latest round of deals, after it revealed a 13.8 per cent stake in Beach Energy worth about $200 million.