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