KrisEnergy to Raise $123M for Thailand, Bangladesh Development Projects

Singapore-based KrisEnergy Ltd. (KrisEnergy or the Company), an independent upstream oil and gas company, announced Monday an underwritten renounceable rights issue (the Rights Issue) to support the Company’s capital expenditure including to grow oil and gas production in existing fields and near-term development projects.

The Rights Issue is expected to generate net proceeds of approximately $123 million (SGD 165.6 million) from issuing 440,144,838 new shares on the basis of 42 rights shares for every 100 existing shares. The rights shares will be issued at $0.286 (SGD 0.385) each, representing a discount of approximately 13.5 percent to the closing price of $0.3306 (SGD 0.445) per share on the Singapore Exchange Securities Trading Limited (SGX-ST) as at June 12 and a discount of approximately 9.9 percent to the theoretical ex-rights price of $0.3172 (SGD 0.427) per share.

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 Reserve 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. 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.

Keith Cameron, CEO of KrisEnergy, commented: “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 license 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.”

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.

Loh Chin Hua, Keppel’s CEO, commented: “We are confident that the experienced team at KrisEnergy will be able to execute their growth strategy, developing their projects and planned programs.”

KrisEnergy today received approval in-principle from SGX-ST for the Rights Issue and will convene an extraordinary general meeting (EGM) to seek shareholder approval for the Rights Issue, amongst other resolutions.

The Rights Issue is targeted to be completed by mid-August, after the convening of the EGM and receipt of applicable approvals from regulatory authorities. An indicative timeline for the Rights Issue will be provided to shareholders in due course.