DNO ASA, the Norwegian oil and gas operator, has completed the private placement of USD 400 million of new, five-year senior unsecured bonds with a coupon rate of 8.375 percent.

The bond placement received strong investor demand across international markets and was oversubscribed.

The bond issue is expected to be settled on or about 29 May 2019, subject to customary conditions precedent.

An application will be made for the bonds to be listed on the Oslo Stock Exchange. In connection with the bond placement, the Company has agreed to buy back USD 60 million in nominal value of DNO01 bonds (ISIN NO 0010740392) at 104.16 percent of par plus accrued interest and USD 10 million in nominal value of FAPE01 bonds originally issued by Faroe Petroleum plc in 2017 (ISIN NO 0010811268) at 107.50 percent of par plus accrued interest.

In addition to partial refinancing of the DNO01 and FAPE01 bonds, net proceeds from the new bond issue will be used for general corporate purposes.

Danske Bank and Pareto Securities AS acted as joint lead managers and bookrunners with SpareBank 1 Markets AS as co-manager and bookrunner.

(Source: DNO)

(Picture: Bonds, from Alexskopje/Shutterstock)

By John Lee.

Pearl Petroleum is reportedly planning to raise additional funding for its drilling and development in Iraqi Kurdistan,

According to Reuters, Patrick Allman-Ward, the chief executive of Dana Gas, which is the majority owner of Pearl Petroleum, told reporters that the funding will “comprise a mix of bank debt, a bond, Exim bank financing as well as contractor and vendor financing.

The company is developing that Khor Mor and Chemchemal gas fields in Iraqi Kurdistan.

(Source: Reuters)

Gulf Keystone Petroleum Ltd., operator of the Shaikan Field in the Kurdistan Region of Iraq, has announced the successful completion of the private placement of a 5-year senior unsecured $100 million bond issue (the “New Notes”).

The New Notes will be issued at 100 percent of par and carry a 10 percent fixed semi-annual coupon. The bond placement received strong investor demand, both from existing and new investors across international markets and was oversubscribed.

The New Notes issue is expected to settle on or about 25 July 2018, subject to customary conditions precedent. An application will be made for the New Notes to be listed on an appropriate recognised exchange. The proceeds from the New Notes will be used to refinance all of Gulf Keystone’s existing $100 million Guaranteed Notes due 2021 (the “Existing Notes”).

With respect to the Existing Notes that have not tendered for exchange, the Company intends to exercise the option to redeem all of the Existing Notes then outstanding at par value according to the call option, expected to take place on 26 July 2018.

Jón Ferrier (pictured), Gulf Keystone’s Chief Executive Officer, said: 

Following our recent announcement of the resumption of investments at the Shaikan Field to increase production to 55,000 bopd, an increase by about 70% compared to current levels, this refinancing resets the Company’s capital structure that was put in place in conjunction with the restructuring in 2016. This is another positive milestone for the company and the Kurdistan Region of Iraq.

“We also look forward to updating the market on our plans to increase production to 75,000 bopd and up to 110,000 bopd in due course.

Sami Zouari, Gulf Keystone’s Chief Financial Officer, said:

“The refinancing confirms the substantial progress achieved by the Company. The New Notes considerably strengthen the Company’s financial capabilities as we embark on our next investment phases in the Shaikan field.”

(Source: GKP)

Gulf Keystone Petroleum (GKP) has mandated Pareto Securities to arrange fixed income investor meetings in conjunction with a potential bond issue.

Following these meetings, and subject to market conditions and acceptable terms, a 5-year senior unsecured bond issue of $100 million (the “New Notes”) may take place.

The proceeds from the New Notes will be used to refinance Gulf Keystone’s existing $100 million Guaranteed Notes due 2021 (the “Existing Notes”).

Subject to market conditions, offer restrictions and the successful closing of the New Notes, Gulf Keystone invites holders of the Existing Notes to offer to exchange their outstanding Existing Notes for the New Notes.

With respect to any Existing Notes not tendered for exchange, the Company intends to exercise the option to redeem all of the Existing Notes then outstanding.

(Source: GKP)

By John Lee.

Kuwait Energy has announced that it intends to proceed with an initial public offering (IPO), and to list on the main market of the London Stock Exchange (LSE).

In a statement to the markets this morning, the company said it expected to raise gross primary proceeds of approximately $150 million from the fundraising, which “will be predominantly used to continue the development of the Group’s assets, notably those in Iraq which are expected to significantly contribute to the Group’s future growth.

Sara Akbar (pictured), Chief Executive Officer of Kuwait Energy, said:

We are delighted to announce our intention to list on the London Stock Exchange, the natural home for Kuwait Energy.

“Kuwait Energy’s strong, in-country relationships and track record of operational delivery in the MENA region are major competitive differentiators and provide a stable platform from which to take the Company to the next level of growth.

“We are already producing close to 27 kboepd in the first quarter of 2017, with a strategy in place to increase that production rapidly, particularly through our Block 9 asset in Iraq which, management believes, has some of the most favourable fiscal terms in the region.

“Over the coming years, the Group’s focus is on developing its current 2P working interest reserves which are in excess of 800 mmboe.

In addition to Block 9, the company also has interests in the Siba and Mansuriya fields.

(Source: Kuwait Energy)

ShaMaran Petroleum has announced that it that it has successfully completed the book build for the equity issue (the “Private Placement”) announced on January 19, 2017, on a private placement basis, of common shares of the Company (“Common Shares”).

The pricing of the Private Placement was determined during the book-building process to be CAD 0.10 (equal to SEK 0.67) per share. This will result in the issuance of 360 million Common Shares for gross proceeds of approximately CAD 36 million (USD 27 million). Pareto Securities has been engaged as manager and bookrunner (the “Agent”) for the Private Placement. Closing is expected to occur on or about January 30, 2017.

The net proceeds from the Private Placement will be used primarily to fund the Company’s expenditures related to the Atrush field development in the Kurdistan Region of Iraq as well as for general corporate purposes.

The Private Placement is subject to TSX Venture Exchange and all other requisite regulatory approvals. Common Shares issued pursuant to the Private Placement cannot be traded into Canada before the date that is 4 months and a day after the issue date. A brokerage fee of 4% will be payable to the Agent on private placement subscription proceeds excluding those subscriptions by the Lundin family trusts.

This information in this release is subject to the disclosure requirements of ShaMaran Petroleum Corp. under the EU Market Abuse Regulation and the Swedish Securities Markets Act. This information was publicly communicated on January 20, 2017 at 7:30 a.m. Pacific Time.

(Source: ShaMaran Petroleum)

Shares in Gulf Keystone Petroleum (GKP) plunged 30 percent to a new low following the mid-morning announcement of details of fundraising and investment options:

Gulf Keystone today publishes further details on potential interim investment scenarios to build a common foundation for stakeholder discussions on the Company’s need for near-term fundraising, upcoming debt obligations and possible restructuring of the Company’s balance sheet.

In this context Gulf Keystone announces, following discussions with the Company’s advisors, its current intention to utilise the grace periods for the upcoming 18 April 2016 coupon payments in respect of its Convertible Bonds and Guaranteed Notes, which expire on 2 May and 3 May 2016, respectively.

Without additional capital expenditure Shaikan wells may begin to exhibit natural declines later in 2016. The potential interim investment scenarios aim to maintain Shaikan production at 40,000 barrels of oil per day (“bopd”) with an option to increase production to 55,000 bopd.

As communicated on 17 March 2016 in the 2015 Results Announcement, these scenarios have been developed to bridge to and complement the revised Shaikan Field Development Plan (“FDP”) currently being reviewed by the Company’s partners.

Commenting on today’s announcement, Jón Ferrier, CEO said:

The additional detail on the potential interim investment scenarios being released today ensures an orderly market, and represents an important step as we prepare to embark upon detailed discussions with stakeholders. 

“We are working to achieve the best possible way to restructure our balance sheet.  Addressing our funding needs will ensure the Company’s longer term future and ability to continue developing the Shaikan field for the benefit of all our stakeholders.

The full announcement can be read here.

(Sources: GKP, Yahoo!)

By John Lee.

Reuters quotes Iraqi Deputy Finance Minister Fathil Nabi as saying that Iraq has abandoned its plan to issue international bonds because the yield it would have to pay was too high.

The required return on the bonds reportedly forced Finance minister Hoshiyar Zebari (pictured) to halt the plan to raise up to $6 billion to support the Iraqi budget.

(Source: Reuters)

DNO ASA, the Norwegian oil and gas operator, has completed the placement of USD 400 million of new, five-year senior unsecured bonds with a coupon rate of 8.75 percent and an issue price of 87.5 percent of par value.

The bond placement received strong investor demand across international markets and its combination of a fixed coupon rate and an original issue discount was designed to meet market yield expectations while reducing the debt service impact on the Company’s operating cash flow.

The bond placement is expected to complete on or about 18 June 2015, subject to customary conditions precedent. An application will be made for the bonds to be listed on the Oslo Stock Exchange.

Net proceeds from the newly issued bonds will be used, among other purposes, to call the Company’s existing NOK-denominated bonds and lock in a substantial foreign exchange gain.

ABG Sundal Collier, DNB Markets, Fearnley Securities and Pareto Securities acted as joint lead managers and bookrunners for the bond issue.

(Source: DNO)

By John Lee.

Genel Energy has announced that it has completed its issue of the U.S. $230 million 7.5% senior unsecured bonds due 14 May 2019.

As part of the issue of the bonds, Genel Energy Finance 3 plc (as issuer) and Genel Energy plc (as parent) entered into a bond agreement on 9 April 2015 with Nordic Trustee ASA on behalf of bondholders.

The Bond Agreement sets out the terms and conditions on which the Bonds were issued.

Genel Energy plc and Genel Energy Holding Company Limited have each, on the same date, also entered into a guarantee of the amounts payable under the Bond Agreement.

(Source: Genel Energy)

(Bonds image via Shutterstock)