OKEA sets IPO terms

Norwegian oil and gas company OKEA has set the terms for its previously proposed Initial Public Offering of shares on the Oslo Stock Exchange.

Draugen; Source: Wiki Commons – Author: Sven Mandel – under the CC BY-SA 4.0 license

The company, which plans to get listed on or about June 11, 2019, plans to raise gross proceeds of NOK 650 million to NOK 858 million (approximately  $74 million to $98 million) through issuing up to 26,000,000 new shares in the offering.

OKEA says that the primary purpose of the offering is to support its growth strategy and “enable OKEA to accelerate its growth plans.”

The Offer Shares will be offered for sale within an indicative price range of between NOK 25 and NOK 33 per Offer Share, corresponding to a pre-money equity value of OKEA of between approximately NOK 2,171 million and NOK 2,866 million ($248 million to $327 million). The final price per Offer Share may, however, be set within, above or below this indicative price range, OKEA has said.

The New Shares will comprise up to approx. 23% of the total number of Shares in issue after the Offering, and together with the Sale Shares and the Additional Shares up to approx. 30% of the total number of Shares in issue after the Offering.

The Trondheim-based company was founded in 2015 with the aim to developed marginal fields offshore Norway. OKEA last year bought Shell’s interests in the Draugen (44.56%) and Gjøa (12%) fields for a total consideration of 4.52 billion NOK (~$566 million). Prior to this, OKEA in 2016 bought 10% share in the Yme license on the Norwegian Continental Shelf (NCS) from Wintershall.

OKEA earlier this month said that the Draugen and Gjøa acquisitions brought it a diversified portfolio totaling ~90 mmboe 2P+2C resources, and a net production of more than 20,000 boepd.

“The production has a stable outlook that provides the Company with a strong free cash flow that will be redeployed into further organic and inorganic growth,” OKEA said.

As the operator, OKEA is planning to extend the life of the Draugen field to 2035 and beyond through a range of identified IOR and infill drilling opportunities.

In addition to the assets currently in production, OKEA is also looking at developing fields with less than 100 mmboe reserves. As the NCS matures further, a significant share of future production is expected to come from such fields, creating significant opportunities for OKEA as an agile independent specialized on this segment, OKEA has said.

“OKEA’s strategy has already proven highly valuable to the Norwegian society with the Company turning the Yme project from decommissioning to a robust and economically attractive field development with first oil expected in H1 2020,” OKEA said earlier this month when it first announced its IPO intentions.

OKEA is also maturing the Grevling / Storskrymten fields into a joint stand-alone development, which, if realized, will be OKEA’s first operated field development.

Earlier this month, OKEA CEO Erik Haugane said that after the Shell acquisition and successful finalization of integration of the Shell operator organization, OKEA was “well-positioned to execute our organic growth strategy and pursue further M&A opportunities.”

Offshore Energy Today Staff


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