EnQuest PLC Announces Stratic Shareholder Approval of Proposed Plan of Arrangement 2 November 2010
Not for release, publication or distribution, in whole or in part, in or into or from Australia, Japan or any other jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction
Independent oil and gas production & development company, EnQuest PLC (“EnQuest”) announced on 3 August 2010 that it had entered into a plan of arrangement (the “Arrangement”) to acquire all of the issued and outstanding shares of Stratic Energy Corporation (“Stratic”) on the basis of 0.089626 of an EnQuest share for each Stratic share.
Today EnQuest notes Stratic’s announcement of the results of its special meeting held today, in which it reports that Stratic’s shareholders approved the Arrangement.
Stratic has stated that it will apply to the Supreme Court of Yukon for a final order approving the Arrangement at a hearing scheduled for November 4, 2010. If the final order is granted and all other conditions precedent are satisfied or waived at such time, Stratic expects that the Arrangement will be completed and become binding upon all Stratic shareholders on or about November 5, 2010. If the Arrangement becomes effective all Stratic shareholders will become shareholders of EnQuest and Stratic will become a wholly owned subsidiary of EnQuest.
For further information please contact:
Tel: +44 (0)20 7925 4900
Amjad Bseisu (Chief Executive Officer)
Jonathan Swinney (Chief Financial Officer)
Michael Waring (Head of Communications & Investor Relations)
Tel: +44 (0)20 7251 3801
Notes to editors
EnQuest PLC (www.enquest.com) is an independent oil and gas production and development company focused on the UK Continental Shelf (“UKCS”). Its assets include the Thistle, Deveron, Heather, Broom, West Don and Don Southwest fields. Gaffney, Cline & Associates (“GCA”) certified that as at 1 January 2010, EnQuest’s assets had total net proved plus probable oil and NGL reserves of 80.5MMBbl. As at 1 January 2010, GCA has also net certified oil and gas best estimate (2C) contingent resources for individual assets. The aggregate of the oil 2C contingent resources on an unrisked basis is 67.5MMBbl, and of the gas contingent resources is 30.6Bcf (See Note 1 below.)
On 6 April 2010, EnQuest was formed from the demerged UK North Sea assets of Petrofac Limited and Lundin Petroleum AB. EnQuest was admitted to trading on both the London Stock Exchange and the NASDAQ OMX Stockholm. On listing, EnQuest PLC went into the FTSE 250 index and OMX Nordix Index. Its assets include the Thistle, Deveron, Heather, Broom, West Don and Don Southwest fields. It has interests in 16 production licences covering 26 blocks or part blocks in the UKCS, of which 15 licenses are operated by EnQuest.
EnQuest believes that the UKCS represents a significant hydrocarbon basin in a low-risk region, which continues to benefit from an extensive installed infrastructure base and skilled labour. EnQuest believes that its assets offer material organic growth opportunities, driven by exploitation of current infrastructure on the UKCS and the development of low-risk near field opportunities, rather than exploitation of high-risk exploration opportunities.
EnQuest intends to deliver sustainable growth in shareholder value by focusing on exploiting its existing reserves, commercialising and developing discoveries, converting its significant contingent resources into reserves and pursuing selective acquisitions. EnQuest is focused on increasing production from its existing assets in its core hub areas. It believes that it has excellent operational, execution, subsurface and integration skills and it seeks to become the development partner of choice in the UKCS.
EnQuest believes that it has the technical skills, the operational scale and the financial strength to achieve its objectives and to take advantage of the production and development opportunities in the UKCS.
Note (1) GCA warns that there may be a significant risk that accumulations containing contingent resources will not achieve commercial production and that it is inappropriate to aggregate contingent resources.
Please note that EnQuest PLC is not in any way related to or affiliated with EnQuest Energy Services Corp.
Stratic is a Canadian incorporated oil and gas company currently focused primarily on the UK North Sea. Its shares are currently listed on the TSX Venture Exchange (ticker “SE”) and the AIM market of the London Stock Exchange (ticker “SE”).
Stratic has a 19% interest in licence P.209 covering Block 9/28a which contains the Crawford field (4.93MMBoe net 2P reserves) and 17.25% interest in the West Don oil field (2.34MMBoe net 2P reserves), which EnQuest operates and in which it already has a 27.7% working interest.
Stratic also has interests in other parts of the UK North Sea (including the Cairngorm and Bowmore discoveries), in the Dutch sector of the North Sea (Horizon West) and in its smaller residual interests in Slovenia and Morocco.
Over the last year Stratic has been implementing a disposal programme of its non-core assets outside the UKCS. In April 2010, it completed the sale of its Italian business for a cash consideration of €33.0 million. On May 7 2010, Stratic announced that it had reached agreement for the sale of its Turkish business for a cash consideration of $3.45 million.