Contemplated equity issue of NOK ~110 million and intention to IPO within 12 months
OKEA AS (“OKEA” or the “Company”), the oil and gas production and development company with operations on the Norwegian Continental Shelf (“NCS”) is contemplating to raise NOK ~110 million through a private placement of new shares (the “Private Placement”) and hereby also announces the intention to list the Company on the Oslo Stock Exchange within 12 months (the “IPO”).
In June 2018, OKEA announced the transformative NOK 4.5bn acquisition of A/S Norske Shell’s 44.56% working interest in the operated Draugen field and 12% interest in the non-operated Gjøa field (the “Shell Acquisition”). The Shell Acquisition establishes OKEA as a company with a material and highly cash-generative portfolio producing around 20,000 boepd, backed by a tier-one operator organization, making OKEA well positioned for further organic and inorganic value accretive growth on the NCS.
The Shell Acquisition is fully funded by a NOK ~1,043 million underwritten equity commitment (the “Equity Commitment”) from the current majority owner Seacrest Capital Group (“Seacrest”) and its strategic co-investor Bangchak Corporation (“Bangchak”), the USD 180 million senior secured bond issued in June 2018, remaining proceeds from the USD 120 million senior secured bond issued in 2017 and pro et contra settlement related to the acquisition.
The proceeds from the Private Placement will be used for working capital prior to closing of the Shell Acquisition, including the continued expansion of OKEA’s business through strategic and structural opportunities, transition costs related to the Shell Acquisition and general corporate purposes. The contemplated Private Placement will enable the employees and other existing shareholders in OKEA to participate in the financing of the Shell Acquisition at similar terms as the Equity Commitment, and will also be open to new investors in order to further strengthen OKEA’s shareholder base ahead of the intended IPO.
OKEA’s CEO Erik Haugane, said “The Shell Acquisition transforms OKEA and puts the Company in a strong position to execute on its organic growth strategy and pursue further M&A opportunities. OKEA has ambitious targets for increased efficiencies and reduced development costs on NCS, and is determined to be an active owner and operator, creating value for OKEA, its partners and the Norwegian state. The decision to IPO marks a new and exciting chapter for OKEA and we are pleased to offer our supportive existing investors and the public the opportunity to participate in the Private Placement before we go public on the Oslo Stock Exchange. Through co-founding Aker BP and leading the company through its early-day growth phase, OKEA’s management team has extensive experience from the public market and we are certain that a listing will enhance our ability to execute on OKEA’s strategy and create value for our shareholders”.
Pareto Securities AS and SpareBank 1 Markets AS act as Joint Lead Managers and Bookrunners of the contemplated Private Placement.
The Shell Acquisition is subject to government approvals with completion expected by the end of the year.
For further information:
Erik Haugane +47 90721655
Knut Evensen +47 95077622 (analysts)
Seacrest Capital Group www.seacrest.com
Alice Carroll +44 20 3588 0065
Established in Trondheim in 2015, OKEA is a Norwegian Continental Shelf focused oil company. OKEA contributes to value creation on the Norwegian Continental Shelf with cost effective development and operation systems in fields with proved reserves which have been traditionally overlooked.
About Seacrest Capital Group
Seacrest Capital Group is a leading independent energy investor specialising in offshore oil and gas investments, leveraging its proprietary assets, relationships and operational and technical capabilities to build a diversified, global portfolio of regionally focused oil and gas companies. Since 2010, Seacrest has invested in a number of upstream oil and gas companies in the United Kingdom, Norway, West Africa, Ireland, South East Asia and South America.
About Bangchak Corporation PCL
Bangchak Corporation Public Company Limited is a Thai energy company engaging in business alongside social and environmental stewardship. Its core business – petroleum refining – spans procurement of crude oil from domestic and overseas sources and refining it into various standard products. It also has businesses in renewables as well as petroleum exploration and production.
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