OKEA will present at the Pareto Oil and Offshore conference this week.

The presentation is available here.

 


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:

OKEA                                             www.okea.no

Erik Haugane                                 +47 90721655

Knut Evensen                                +47 95077622 (analysts)

Seacrest Capital Group                www.seacrest.com

Alice Carroll                                   +44 20 3588 0065

 

About OKEA

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.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART DIRECTLY OR INDIRECTLY, IN AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES DIRECTLY OR INDIRECTLY, IN AUSTRALIA, CANADA, JAPAN OR THE UNITED STATES OR ANYOTHER JURISDICTION IN WHICH THE RELEASE, PUBLICATION OR DISTRIBUTION WOULD BE UNLAWFUL. THIS ANNOUNCEMENT DOES NOT CONSTITUTE AN OFFER OF ANY OF THE SECURITIES DESCRIBED HEREIN.

 


OKEA AS reported total income of NOK 19.2 million and an operating loss of NOK 19.0 million for the second quarter 2018. Net loss was NOK 32.1 million.

Main highlights in the quarter were:

OKEA entered into SPAs with Shell for the acquisition of 44.56% in the Draugen Field and 12.0% in the Gjøa Field. The transaction is expected to close in the fourth quarter this year. To partly secure the funding of this transaction OKEA raised a new USD 180 million five year floating bond in the Oslo market in June 2018, with the money raised, after fees and expenses, pledged in an escrow account until closing.

New major investor, Bangchak Corp, provided a bank guarantee for 90% of the deposit in the Shell transaction, and has together with majority shareholder Seacrest committed to invest in OKEA to meet the remaining funding requirements under the transaction.

The Yme development project has commenced following PDO approval on March 23, 2018. OKEA follows the project closely, and the project is progressing according to the PDO plan.

For Q2 2018 production on the Ivar Aasen field averaged 64,370 boed, of which 356 boed was net to OKEA. Related to bond terms, the tax/shelter ratio was 1.42 for Q2 2018.

Following the Shell transaction, the board of directors in OKEA are of the opinion that the company is well positioned for further growth, both organic and inorganic. The company is actively pursuing new business development opportunities to grow and strengthen the company.

Financial Statements 2Q 2018 are now available here




OKEA Annual Statement for Reserves and Resources 2017 is available here


OKEA AS reported a total income of NOK 16.3 million and a operating loss of NOK 18.5 million for the first quarter 2018. Net loss was NOK 486 thousands.

Main highlights:

The PDO for the “Yme New Development” project was approved by the MPE on March 23, 2018. OKEA follows the project closely, and the project is on track with planned first oil in late 2019.

OKEA was awarded two licenses in the APA 2017 Offshore Licensing Round; the first was an extension to the Yme license and the second was an extension to the Ivar Aasen unit.

OKEA raised USD13m through an equity offering directed towards Norwegian investors, including OKEA employees (the employees contributed USD2m).

As part of the new equity offering, OKEA changed the composition of the board of directors at the company’s General Assembly in April 2018. Erik Haugane and Ola Borten Moe, as founder representatives, stepped down as directors, while three new independent directors were elected; Kaare Moursund Gisvold, Knud Hans Nørve and Arild Christian Selvig.

OKEA singed a SPA with Chrysaor for 15% of the Grevling license. Chrysaor is going through pre-qualification, and the expected MPE approval for the license assignment is Q2/Q3 2018.

For Q1 2018 production on the Ivar Aasen field averaged 68,240 boed, of which 380 boed was net to OKEA.

Related to bond terms, the tax/shelter ratio during Q1 2018 has been 1.49.

Financial highlights after close of Q1 financial statements:

In May OKEA established a NOK 300m exploration facility with SEB and Sparebank1 SMN

The board of directors in OKEA are of the opinion that OKEA’s current financial postion is sufficient for the ongoing developments and business development initatives.

Financial Statements 1Q 2018 are now available here