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Warburg provides $300m to oil platform Laredo

Oklahoma-based Laredo, seeded by Warburg last year, has used equity financing from the New York-based firm to make acquisitions and continue drilling in the ‘mid-continent’ region of the US.

Warburg Pincus has closed a second round of equity financing in Laredo Petroleum, investing $300 million in the Oklahoma oil and gas company. 

The second funding round mirrors the original $300 million Warburg committed to seed Laredo in July 2007, which the company deployed through its active exploration program and multiple strategic acquisitions, the Laredo said in a statement.

Laredo said it will use the new financing for continued exploration and development drilling, as well as additional acquisitions. The company expects to continue exploration and drilling in its Texas panhandle and Oklahoma Anadarko Basin properties.

Warburg formed Laredo in 2007 in partnership with the company’s chief executive Randy Foutch.

Laredo recently acquired $185 million in assets from oil and gas company Linn Energy. The assets consist of 50,000 acres in south central Oklahoma containing 45 billion cubic feet of natural gas and gas equivalent.

Warburg, which closed its 10th private equity fund on $15 billion in April, has invested about $3.5 billion in more than 30 energy companies globally.

The firm recently said it would invest up to $300 million in Competitive Power Ventures, a US company focused on the development of North American natural gas projects. Other recent energy investments include Canadian oil and gas exploration company Canbriam, Chinese oil logistics company Titan Petrochemicals and US gas-fired electricity producer APT Generation.