KrisEnergy Ltd.,an independent upstream oil and gas company announced that it has registered a prospectus with the Monetary Authority of Singapore in connection with the firm's initial public offering (IPO).
The Singapore-based firm is issuing 151.993 million shares at $0.87 (SGD 1.10) per share in the IPO, which closes July 17. Separately, Keppel Corporation's wholly-owned subsidiary Devan International Limited, Palang Sophon Offshore and an international investment management group has entered into a cornerstone subscription agreement with KrisEnergy for a total of 94.161 million Cornerstone Shares.
The company expects to raise up to $214.5 million (SGD 270.8 million) from the IPO and Cornerstone tranche. Keppel Corporation and private equity firm First Reserve will be the controlling shareholders in KrisEnergy.
KrisEnergy intends to use approximately $60.7 million (SGD 76.6 million) of the net proceeds for acquisitions (including farm-ins), $112.6 million (SGD 142.2 million) for planned capital expenditures (including exploration, appraisal and development of existing assets) and $29.9 million (SGD 37.8 million) for general working capital.
“We are delighted to announce the proposed listing of KrisEnergy. We have spent the last few years successfully building our asset base and moving our discoveries up the development and value pipeline. The injection of new capital will allow us to continue pursuing our focused strategy of discovering hidden value in significant assets to bring oil and gas to market. We are committed to achieving sustainable growth and delivering value to all of our shareholders,” Keith Cameron, KrisEnergy’s CEO said in a press release.
Southeast Asia-focused KrisEnergy currently has a diverse portfolio comprising 14 contract areas in four countries - Cambodia, Indonesia, Thailand and Vietnam. This will rise to 16 contract areas in 5 countries (including Bangladesh) if its acquisition of Tullow Bangladesh Ltd. and its farm-in to Block G6/48 in the Gulf of Thailand are completed.
“KrisEnergy is well positioned for continued shareholder value growth with a diversified portfolio that has considerable upside potential in multiple geological basins and countries within a region of increasing energy demand. The KrisEnergy team has demonstrated through their successful track record that they have the required competencies, as well as the regional expertise, to maximize the portfolio’s value while further increasing production and reserves through strategically sound acquisitions,” Will Honeybourne, KrisEnergy’s non-executive chairman and First Reserve managing director, said in the press release.
The company recently made a gas discovery at Tayum-1 well in the Kutai production sharing contract offshore Kalimantan in the Makassar Strait, Indonesia.
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