Carlyle is backing the acquisition of Parallax Energy Operating, a Calgary-based oil and gas producer, through Avenrock Energy, a newly formed Canadian company it is supporting. For Carlyle, the equity is being deployed through Carlyle International Energy Partners (CIEP), its global energy investment arm, which is acquiring Parallax from Houston-based Carnelian Energy Capital. While the company did not disclose financial terms, the deal values Parallax at about C$1bn ($719m), according to a report by Bloomberg citing people familiar with the agreement, who added that the business produces around 20,000 barrels of oil equivalent a day.

Parallax owns and operates a 75% working interest in a portfolio of exploration and production assets in the East Shale Duvernay, spanning approximately 300,000 gross acres, with output focused predominantly on light oil and natural gas liquids. Through the acquisition, Avenrock intends to develop that base further to build out a leading Western Canadian light oil platform. The new company will be led by an experienced operator.

Paul Smith, who brings more than 30 years in the sector and previously served as chief financial officer and a board director at Vesta Energy before its acquisition by Parallax, has been appointed chief executive of Avenrock. He was also formerly CFO of Talisman and Wintershall Dea.