Chrysaor Agrees $175 Million Funding

Chrysaor Agrees $175 Million Investment

Chrysaor Holdings Limited , an independent exploration and production company focused on developing and commercialising oil and gas discoveries in the UK North Sea and Ireland, has successfully agreed terms for a $175m equity investment.

The successful fundraising is from a combination of new and existing shareholders together with a significant investment by senior management. The new funds will be used to finance the Company’s exciting high impact portfolio in Quad 35 offshore West of Ireland as well as select acquisitions. Existing core UK operations include two fields, Solan and Phoenix, as well as a significant acreage position in 15 exploration blocks.

Solan is on target to reach first production in 2014 when Chrysaor will take over production operatorship of this licence. Phoenix is a gas  condensate field located in the Moray Firth Basin where Chrysaor is currently evaluating commercial export solutions. In Quad 35, West of Ireland the area contains two proven discoveries, including Spanish Point, as well as multiple prospects and leads and is located in the highly prospective Porcupine Basin. On 7th May, Chrysaor announced that it had entered in to a farm-out agreement with Cairn Energy PLC whereby the latter will acquire the rights to obtain a 38% interest in Chrysaor’s Quad 35 licenses in return for participating in and promoting the drilling of up to 2 wells and a major 3D seismic programme.

Non-Executive Director Appointments: 

John Hogan and Bob Edwards have joined the board as non-executive directors following on from the completion of the further financing. Each comes with significant industry and capital markets experience which together will prove invaluable as the Company continues to develop the business in line with its ambitions.

John Hogan has over 35 years’ experience in the oil & gas industry. Between 1989 and 1993, he was Managing Director of LASMO North Sea and subsequently on the main board as Chief Operating Officer. He is currently Managing Director of Argos Resources, an AIM listed Company with assets in the Falkland Islands, Chairman of both Hurricane Energy PLC, a fractured basement play specialist and Celtique  Energie Limited, a privately owned, British-based oil and gas exploration company with subsidiaries and operations across six European countries.

Bob Edwards is currently a Managing Director of Natural Gas Partners, which manages $10.8 billion in a family of funds that invests private equity capital in oil and gas production, midstream, oilfield services and power. He has over 30 years’ experience in the oil & gas industry, primarily as Vice President and Head of Strategy for the Gas, Power and Renewables at BP plc and with Marathon Oil Company. Between 1994 and 2005 he was a Partner at McKinsey & Company in the Energy Practice.

Commenting, Phil Kirk Chrysaor CEO, said:

“We are very pleased to have successfully secured material further funding in what remains a difficult environment for E&P companies trying to raise capital. The new investment firmly endorses the team track record and the potential within our exciting portfolio. It also puts us in a very strong position to take advantage of acquisition and development opportunities as they arise.”

 

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Press Release, July 5, 2013