AKER EXPLORATION RAISES NOK 1.37 BILLION
Oil companies and institutional investors have shown significant interest in the innovative, focused, Norwegian Continental Shelf exploration company Aker Exploration.
- Aker Exploration now has a solid foundation for aggressively pursuing its objectives, says Aker Chairman and President and CEO Leif-Arne Langøy. - The decision to execute these private placements now results from an excellent and positive dialogue with large institutional investors.
Norway`s Ministry of Petroleum and Energy has prequalified Aker Exploration as a Norwegian Continental Shelf rights holder. Aker Exploration is currently negotiating with oil companies to conduct offshore exploration in exchange for license ownership stakes.
- We have created a win-win situation for oil companies, public authorities, Aker Exploration, and Aker, says Mr. Langøy.
- Our robust financial solution and access to an ultra-modern drilling rig, provide an optimal starting point for the unique, focused Norwegian Continental Shelf exploration company, Langøy says.
Aker Exploration plans to drill between five and seven wells annually as of 2009 in northern Norwegian Continental Shelf zones.
- If our drilling success approximates the historical track record, Aker Exploration`s profitability will be excellent, says Aker Exploration President and CEO Bård Johansen.
Today, Aker Exploration confirmed an agreement with the listed company Aker Drilling on a three-year drilling contract, beginning 31 October 2008; Aker Exploration has an option to extend the agreement by an additional two years. The drilling contract, which runs from October 2008 to October 2011, has a possible total value of approximately NOK 3.8 billion.
Equity and debt issues - funding detailsAker Exploration raised NOK 915 million in equity from international and Norwegian investors. Of this amount, Aker contributed approximately NOK 300 million.
Prior to the share issue and private placement of shares, Aker Exploration was valued at NOK 305 million. Aker`s ownership interest in Aker Exploration was reduced, from 100 percent to just under 50 percent, following the share issue.
Aker Exploration management has acquired shares for more than NOK 20 million in this placement at the same as price as other investors. This represents approx 1.7 per cent of the shares in the company after the placement.
Aker Exploration also raised NOK 457.5 million from international investors via a convertible bond issue; the bonds can be converted into Aker Exploration shares. Thus, Aker Exploration has received funds amounting to just over NOK 1.37 billion via equity and convertible bond issues.
A bridge credit facility of NOK 1.83 billion is managed by DnB NOR and Barclay`s Bank.
The per-share Aker Exploration issue price was NOK 61, which established the company`s market value at NOK 1.22 billion (20 million shares outstanding). Following share and cash settlement on 18 December 2006, Aker will own just under 10 million Aker Exploration shares. Plans are to apply for listing of Aker Exploration on the Oslo Stock Exchange in the first six months of 2007.
Aker holds warrants to acquire 5 million new shares in Aker Exploration for NOK 1 per share in the period between 1 January 2010 and 31 December 2011, if the stock price in Aker Exploration at least doubles.
The convertible bond loan has a term to maturity of five years and features a 6-percent fixed annual interest rate. Until maturity, the bonds can be converted into Aker Exploration shares at a conversion price of NOK 79.30 per share.
Carnegie ASA has been Aker`s financial advisor for the aforementioned transactions.--------
For further information, please contact:Bård Johansen, President and CEO, Aker Exploration ASA, tel: +47 913 92 455,Geir Arne Drangeid, EVP, Aker ASA, tel: +47 913 10 458