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Keppel Group to subscribe KrisEnergy’s rights issue

JAKARTA (rambuenergy.com) – KrisEnergy Ltd, an upstream oil and gas company based in Singapore, has conducted rights issue worth $165.6 million to support the Company’s capital expenditure including to grow oil and gas production in existing fields and near-term development projects.

The company will issue 440.14 million new shares on the basis of 42 rights shares for every 100 existing shares. The rights shares will be issued at S$0.385 each, representing a discount of approximately 13.5 percent to the closing price of S$0.445 per share on the Singapore Exchange Securities Trading Limited  as at June 12, 2015 and a discount of approximately 9.9 percent to the theoretical ex-rights price of S$0.427 per share 2.

In support of KrisEnergy’s ongoing growth plans, Singapore conglomerate Keppel has undertaken to subscribe for its full entitlement, amounting to 137,985,120 rights shares or approximately 31.3 percent of the Rights Issue.

Private equity energy specialist First Reserve3 has also undertaken to subscribe for approximately 43.9 percent of its entitlement, amounting to 87,298,701 rights shares or approximately 19.8 percent of the Rights Issue.

The remaining rights shares, representing approximately 48.8 percent of the Rights Issue, have been underwritten by Merrill Lynch (Singapore) Pte. Ltd., the Lead Manager and Underwriter for the Rights Issue.

KrisEnergy said Keppel will act as sub-underwriter for all such underwritten rights shares. In the event that Keppel is required to sub-underwrite all the sub-underwritten shares, Keppel’s interest in KrisEnergy will not exceed 50.0 percent after the completion of such sub-underwriting, and KrisEnergy will remain an associated company of Keppel.

“The Rights Issue will enable us to continue our strategy of near-term growth in reserves, resources and production, and will increase our borrowing capacity for future projects such as in the G6/48 licence in the Gulf of Thailand, where we made a series of oil discoveries in the Rossukon area earlier this year for which we intend to submit a development plan shortly,” Keith Cameron, Chief Executive Officer of KrisEnergy, said.

KrisEnergy is developing the Nong Yao and Wassana oil fields in the Gulf of Thailand, both of which are expected to commence production in the second half of 2015. The company is also targeting to drill two development wells beginning in the fourth quarter of 2015 to increase production in the Bangora gas field, onshore Bangladesh.

KrisEnergy has secured approval in-principle from SGX-ST for the Rights Issue and will convene an extraordinary general meeting to seek shareholder approval for the Rights Issue, amongst other resolutions.

The Rights Issue is targeted to be completed by mid-August 2015, after the convening of the EGM and receipt of applicable approvals from regulatory authorities.

KrisEnergy Ltd. is an independent upstream company focused on the exploration for, and the development and production of oil and gas in Southeast Asia. The company currently operates 13 of the contract areas.

In Indonesia, KrisEnergy operates seven production sharing contracts (PSCs) – Bulu, East Muriah, Sakti, East Seruway, Kutai, Tanjung Aru and Udan Emas, four of which contain gas discoveries (Kutai and Tanjung Aru offshore Kalimantan, and Bulu and East Muriah offshore in the East Java Basin). KrisEnergy holds one non-operated licence in the Block A Aceh PSC onshore North Sumatra, where three gas discoveries are in the development stage. (*)

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