Aker, PGS to Invest in Genesis

Genesis Petroleum Corporation Plc has reached agreement on a significant capital fundraising exercise (the "Fundraising") under which the Company will issue 50 million new ordinary shares (the "New Shares") at an issue price of 20 pence per share to raise 10 million, before expenses. Application has been made for the New Shares to be admitted to AIM and they are expected to begin trading on Friday 20th April 2007. Following the Fundraising, the Company will have 102,618,609 shares in issue.

Upon completion of the Fundraising, Aker Capital AS ("Aker") and Petroleum Geo-Services ASA ("PGS"), both Norwegian companies, will each hold 25 million New Shares in the Company, each representing 24.36% of the enlarged issued share capital of Genesis. Under the terms of the Fundraising, 25 million New Shares will be issued to Aker through a direct subscription and a further 25 million New Shares will be issued to PGS as consideration for the acquisition by Genesis of a newly formed un-listed investment company, Domino Capital Limited which has no material assets other than 5 million in cash.

It is intended that the net proceeds of the Fundraising will be used to finance the Company's working capital and exploration costs and allow Genesis to make commitments to a drilling program on the Company's portfolio of licensed acreage, which is expected to include acreage offshore Norway, in due course. Drilling decisions are anticipated over the next several months.

Under the terms of the Fundraising, Aker and PGS have each been invited, for so long as they continue to hold more than 10% of the issued ordinary shares of the Company, to nominate one non-executive director to the Board of Genesis.

Carnegie ASA advised Genesis on the Fundraising as the Company's Norwegian financial advisor.

Speaking for Genesis, Gerry Harrison, Chief Executive said:

"We are delighted to welcome two significant strategic investors to Genesis. PGS has been a joint venture partner in our Genesis Europe subsidiary since last year and we are very pleased that they are making a further investment and taking a direct stake in the Company. This new investment confirms the early success of the Genesis Europe business and signals recognition of the potential that the PGS seismic data library and geophysical expertise and resources can create. We also hope that our new relationship with Aker will give us access to other resources in the Aker Group. We have a strong team in place and now we have capital to take our business forward. The Company can also call on additional expertise in the fields of geophysical operations, reservoir modelling, drilling and production techniques to drive the Company forward towards exploration success."


Our Privacy Pledge

Most Popular Articles

Brent Crude Oil : $50.79/BBL 1.30%
Light Crude Oil : $49.96/BBL 1.10%
Natural Gas : $2.77/MMBtu 2.12%
Updated in last 24 hours