Beach Drums up A$191 MM for Egyptian Development

  • A$191 million raised via placement of new shares at A$1.43 each to institutional and sophisticated retail investors
  • Funds raised to finance the acquisition of three previously announced onshore and offshore Egyptian acquisitions in highly prospective Basins potential to add 8 mmb of net 2P oil reserves in FY2009
  • Go-ahead for share purchase plan ("SPP") and bonus option issue for eligible shareholders
  • Beach Petroleum has completed a placement of shares to institutional and sophisticated investors, raising A$191 million for the Company's ongoing expansion. The institutional placement, which was well oversubscribed closed yesterday for domestic investors and this morning for international investors, resulting in a total of 133,637,474 shares being placed at A$1.43 per share. Trading in Beach shares on the ASX will resume today, Friday, June 6, 2008.

    Egyptian acquisitions

    It is proposed that the majority of the capital raised in the placement will be used to fund the acquisition of three previously announced onshore and offshore Egyptian acquisitions Beach has entered into agreements (subject to various conditions including preemption) to acquire interests in the offshore North Shadwan and South East July concessions and onshore North Qarun concession, all in Egypt (as announced to ASX on May 22 and May 30). These interests are non-operated and range between 20-25% of the relevant concession ("The Egyptian Acquisitions"). The total costs (including estimated development expenses) of The Egyptian Acquisitions will be approximately A$150 million. These acquisitions are in highly prospective Basins and have the potential to add 8 mmb of net 2P oil reserves in FY2009 The 20% interest in the North Shadwan concession is being acquired from TriOcean Energy and is subject to a pre-emptive right in favour of BP Exploration (Delta) Limited, a subsidiary of British Petroleum, (this pre-emptive right expires June 28).

    Other potential acquisitions

    In addition to the above, Beach is also at an advanced stage of evaluating further opportunities in the Middle East and North African region.

    SPP and bonus options issue

    With the completion of the placement, Beach Petroleum also announced today that eligible Australian and New Zealand shareholders in the Company will now be able to subscribe for up to A$5,000 worth of shares through a nonunderwritten SPP at A$1.43 a share, the same price as the institutional placement.

    To participate in the SPP, shareholders must be registered as holders on Monday, June 16, 2008. In addition, eligible shareholders who are registered holders at record date on Thursday July 31, 2008 will also be entitled to participate in a 1 for 10 listed bonus options issue, with an exercise price of A$2.00 per share and expiry date of June 30, 2010.


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