Equity offering raises MUSD 60 (MSEK 455.8) - Pechoraneft acquisition to be completed
West Siberian Resources Ltd has raised MUSD 60 (SEK 455.8 million) through a private placement of 106 million common shares/depositary receipts. The shares were placed with international institutional investors in Europe and the US at SEK 4.30 per share. West Siberian Resources Ltd also secured debt financing and obtained necessary formal approvals required to complete the recently announced Pechoraneft and NBNK acquisitions.
In a private placement, institutional investors subscribed for 106,046,512 common shares with a subscription price of SEK 4.30 per share. Gross proceeds from the placement amounted to MUSD 60.0. The number of outstanding shares/depositary receipts in West Siberian Resources increases from 686,480,800 shares/depositary receipts to 792,527,312 shares/depositary receipts with a total share capital of USD 39,626,366 The proceeds from the offering will partially be used to complete the pending acquisitions of Pechoraneft and NBNK, which are expected to close before the end of September. West Siberian Resources Ltd also raised bank debt of MUSD 60 million to finance the acquisitions. The acquisitions were subject to approvals from the Russian Antimonopoly Committee which have been obtained. Proven and probable oil reserves of 43.85 million barrels in the Timano-Pechora region, oil production of 7,000 barrels per day, and significant exploratory potential are added through the acquisitions. ”The successful private placement was actually increased to accommodate investor demand. We will close the pending acquisitions and double the scope of our operations while maintaining a balance sheet and cash position that allows pursuing additional acquisition opportunities.” Maxim Barski, West Siberian Resources’ Managing Director stated. For further information: Maxim Barski, Managing director, West Siberian Resources Ltd., tel. +7 095 723 07 18 Eric Forss, Chairman, West Siberian Resources Ltd., tel. +46 8 613 00 85 Also visit www.westsiberian.com