OKEA’s private placement attracts ‘strong interest’

Norwegian oil operator OKEA has raised NOK 110 million ($13,5 million) through a private placement of 475,000 new shares at a subscription price of NOK 231.46 per share.

Seacrest-backed OKEA, formed in 2015 to developed marginal fields offshore Norway, said: “The Private Placement attracted strong interest and was significantly oversubscribed having attracted demand from a combination of existing shareholders and new investors, providing OKEA a strengthened shareholder structure ahead of the contemplated IPO during 2019.”

Completion of the Private Placement is subject to approval by an extraordinary general meeting in the Company 2nd October 2018.

OKEA earlier in September said the proceeds from the Private Placement would be used for working capital prior to the closing of the Shell Acquisition announced in June, as well as for continued expansion of OKEA’s business through strategic and structural opportunities, transition costs related to the Shell Acquisition and general corporate purposes.

As previously reported Shell in June agreed to sell its working interests in the Draugen (44.56%) and Gjøa (12%) fields for a total consideration of 4.52 billion NOK (~$566 million). Also, 80% of decommissioning financial liabilities will remain with Shell up to an agreed cap.

Announcing the Shell deal, OKEA said the transaction would be financed through a combination of underwritten bond loan and equity. Bangchak Corporation PCL, a Thai downstream oil and gas company, have entered into a strategic partnership with Seacrest Capital Group, and together they will finance the acquisition.

The Shell Acquisition is fully funded by a NOK ~1,043 million underwritten 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.

Pending successful completion of Shell’s assets, OKEA estimates to acquire net daily production of c.22,000 barrels of oil equivalent from January 2018. According to Woodmac, on completion OKEA would rank 19^th on the NCS in terms of daily production in 2018. OKEA’s net resources are expected to increase from 11 to 53 million barrels oil equivalent.

Offshore Energy Today Staff