4th Jul 2019 14:30
(Alliance News) - Energean Oil & Gas PLC on Thursday said it has completed its previously announced share placing to fund the buyout of an oil exploration business
The company issued 23.4 million new ordinary shares at 900 pence per share, raising gross proceeds of GBP211 million, or around USD265 million. Certain Energean directors, their related parties and senior managers of Energean participated in the share placing to the aggregate amount of GBP3.0 million.
The share placing price represents a discount of 2.9% to the middle market price at the time at which the company and placing managers Morgan Stanley & Co International PLC and Stifel Nicolaus Europe Ltd agreed the placing price.
Shares in Energean Oil were up 13% at 955.00p each in London on Thursday afternoon.
Earlier on Thursday, the company said it will buy the oil exploration and production unit of Italian electricity and natural gas company Edison SpA for a total consideration of USD850 million.
The Mediterranean-focused company agreed to buy Edison Exploration & Production SpA for USD750 million, with an additional contingent consideration of USD100 million payable following first gas from the Cassiopea development, offshore Italy.
The acquisition will add working interest 2P reserves of 292 million barrels of oil equivalent, with the enlarged Energean company to have a total of 639 million barrels of 2P reserves. Edison Exploration & Production's portfolio of assets includes producing assets in Egypt, Italy, Algeria, the UK North Sea and Croatia as well as development assets in Egypt, Italy and Norway.
Energean Oil said it would the initial USD750 million consideration through a USD600 million committed bridge loan facility and up to USD265 million of equity financing through a share placing.
"The acquisition of Edison E&P establishes Energean as the leading independent, gas focused E&P company in the Mediterranean with a mainly operated, low cost, gas weighted portfolio, with the capability, focus and team to prosper in our rapidly changing industry. It will diversify Energean into a multi-country, multi-asset, full-cycle E&P company with scale, material cash flows, significant growth and portfolio optionality," said Chief Executive Mathios Rigas.