Dana to Acquire Majority Stake in Ener
Dana Petroleum plc on Tuesday signed conditional agreements for shares in the Norwegian independent oil company Ener Petroleum ASA that, upon completion, will lead to Ener becoming a controlled subsidiary of Dana.
Firstly, Dana has agreed terms to conditionally subscribe for 1,518,750 new shares in Ener at a subscription price of NOK 160 per share. The subscription represents approximately 53% of the fully diluted share capital of Ener following the issuance of the new shares to Dana. These funds will be applied to grow the Ener exploration and production business on the Norwegian Continental Shelf.
In addition, Dana has entered into conditional share acquisition agreements for the purchase of certain existing shares in Ener, all at a price per share of NOK 220 payable in cash. Upon completion of these transactions, Dana will control approximately 93.7% of the total shares in Ener, which will then become the Norwegian subsidiary of Dana. Once Dana has reached 100% shareholding in Ener, the effective purchase price Dana will have paid to acquire 100% of Ener will be approximately £24 million.
The transactions are subject to certain conditions, including regulatory approvals from the Norwegian Ministry of Petroleum and Energy and The Norwegian Ministry of Finance.
Chief Executive Officer of Dana Petroleum, Mr Tom Cross commented:
"The acquisition of Ener is directly in line with Dana's strategy, which is delivering strong growth from exploration and production across the North Sea and Africa.
"This deal represents an important step for Dana as it will create a substantial business in Norway with the technical and financial strength to build further. Upon completion of this transaction and pending completions in Egypt, the Dana Group's total number of producing fields will rise to 30, of which 17 will be in the North Sea. The Ener deal will add to Dana approximately 5,400 barrels of oil equivalent per day and most importantly accelerate a portfolio of attractive business opportunities in Norway, with the first exploration target scheduled for drilling in the next quarter."
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