Petrofac awarded US$1 billion EPC project in Algeria
Petrofac has been awarded a contract worth around US$1 billion with Groupment Isarene, the joint operating group set up by Sonatrach, Petroceltic and Enel, for the Ain Tsila Development Project in Algeria.
Located around 1,100 kilometres south-east of Algiers, the Ain Tsila field will produce gas, LPG and Condensate, for the local Algerian market and for export. Under the terms of the 42-month contract, the lump-sum engineering, procurement and construction (EPC) project scope of work includes commissioning, start-up and performance testing.
E S Sathyanarayanan, Group Managing Director, Engineering & Construction, commented: “I am delighted we have the opportunity to be working with the Groupement Isarene partners to deliver this strategically important project.
“This award builds on Petrofac’s significant track record in Algeria where we have been operating successfully for more than 20 years, with a strong record for project execution and the development of local capability. We are focused on delivering an effective, safe solution that meets our high standards and continues our commitment to the local energy sector.”
Petrofac’s EPC activities in Algeria include Sonatrach’s Tinrhert Field Development Project, along with the Alrar and Reggane projects that commenced production last year.
RESULTS FOR THE YEAR ENDED 31 DECEMBER 2018
· Solid operational performance in all our businesses
· Business performance net profit (1)(2) down 2% to US$353 million
· Reported net profit (2) of US$64 million post impairments and exceptional items
· New order intake (3) of US$5.0 billion; backlog (4) of US$9.6 billion at 31 December 2018
· Net debt eliminated; net cash of US$90 million
· Full year dividend of 38.0 cents per share
Full details below...
Petrofac secures UK Well Services agreement
Petrofac’s Engineering and Production Services (EPS) business has added to its growing Well Engineering portfolio with the award of a contract from independent Exploration and Production company, Siccar Point Energy.
The three-year agreement, which includes options to extend, is estimated to be worth up to US$95 million over the term.
The contract includes provision of Well Operator and Well Engineering Project Management services including supply chain management, for Siccar Point’s operated assets West of Shetland. Under these terms, Petrofac will be responsible for all new well work and the ongoing integrity management of existing well stock.
Petrofac will also deploy its industry-leading well project management software, WellAtlas®* to ensure efficient and assured project delivery.
Commenting on the award, Nick Shorten, Managing Director for Petrofac Engineering and Production Services in the Western Hemisphere, said: “We are delighted to have secured this significant new scope with Siccar Point Energy and very much look forward to supporting them in successfully delivering their ambitious exploration, appraisal and development plans, safely and cost efficiently over the next three years.
“This award builds on our existing track record for delivering Well Operator and Project Management services for clients across the globe, but specifically West of Shetland, where we have significant exploration, appraisal and development experience.”
* WellAtlas® is a unique integrated software tool which supports the entire well management and delivery agenda, providing a comprehensive overview of projects.
I've loaded up on Petrofac shares, this morning.
I've been buying in 5000k tranches.
Lowest paid 420.6667
Highest paid 445.8636
I've bought a total of 42685K shares, this morning.
Will now sit back and wait for the price to head back towards 545.00 region.
LONDON (Reuters) - A former executive at British oil firm Petrofac has pleaded guilty to eleven counts of bribery as part of an ongoing Serious Fraud Office investigation into the company and its subsidiaries, prosecutors said on Thursday.
David Lufkin, 51, a British national and previously global head of sales for Petrofac International Limited, entered his pleas at Westminster Magistrates' Court on Wednesday.
The SFO said the charges related to the making of corrupt offers to influence the award of contracts to Petrofac worth in excess of 730 million dollars in Iraq and in excess of 3.5 billion dollars in Saudi Arabia.
The SFO said its investigation into Petrofac's use of agents in multiple jurisdictions, including Iraq and Saudi Arabia, is ongoing. Lufkin will be sentenced at a later date, prosecutors added.
The SFO first said it had begun an investigation into Petrofac in 2017 as part of a wider probe into Monaco-based oil and gas consultancy Unaoil.
Petrofac said last February that it expected its top management to be interviewed as part of the SFO investigation.
Petrofac did not immediately respond to a request for comment.
(Reporting by Iain Withers; Editing by Rachel Armstrong)
RNS Number : 3724P
07 February 2019
7 February 2019
BOARD UPDATE ON UK SERIOUS FRAUD OFFICE INVESTIGATION
This morning the Serious Fraud Office announced that a former employee of a Petrofac subsidiary yesterday admitted bribery under the UK Bribery Act 2010.
Petrofac confirms that no charges have been brought against any Group company or any other officers or employees. Although not charged, a number of Petrofac individuals and entities are alleged to have acted together with the individual concerned.
No current Board member of Petrofac Limited is alleged to have been involved.
René Médori, Chairman of Petrofac, said:
"The SFO has chosen to bring charges against a former employee of a subsidiary company. It has deliberately not chosen to charge any Group company or any other officer or employee. In the absence of any charge or credible evidence, Petrofac intends as a matter of policy to stand by its employees."
"Petrofac has policies and procedures in place designed to ensure that we operate at the highest levels of compliance and ethics."
Glencore says 2018 output boosted by restart of Katanga unit
LONDON (Reuters) - Miner and trader Glencore said on Friday cobalt production in 2018 soared 54 percent while copper output rose 11 percent due to the restart of operations in the Democratic Republic of Congo.
The London-listed company stuck to its 2019 production guidance set out in an update to investors in December.
Production of cobalt, used in batteries for electric vehicles, reached 42,200 tonnes in 2018 while copper hit 1.453 million tonnes.
Glencore’s Katanga Mining unit in Congo ramped up in late 2017.
Tullow Oil's 2019 output to rise as Ghana production ramps up
* Uganda farm-out's $208 mln inflow slips into 2019
* 2018 free cash flow at $410 mln
* Net debt at $3.1 bln
LONDON, Jan 16 (Reuters) - Tullow Oil's production is set to grow to between 94,000 and 102,000 barrel of oil equivalent per day (boed) this year, it said in a trading update on Wednesday, from 90,000 boed last year as it increases output in Ghana.
The Africa-focused company had previously expected around $208 million from selling part of its stake in Ugandan oilfields to come in before the end of 2018, but the timeframe slipped which weighed on free cash flow and debt reduction.
Free cash flow stood at $410 million. It had previously said its cash flow for 2018 could reach as much as $700 million. Crude oil slumped by more than a third in the second half of 2018 to below $50 a barrel.
Tullow's net debt at the end of last year stood at $3.1 billion, higher than the $2.8 billion forecast.
Uganda's energy minister said on Dec. 20 that she had given Tullow conditional approval to sell part of its stake in Ugandan oilfields to France's Total and China's CNOOC but only after $167 million of tax on the deal is paid, a view Tullow disagrees with.
Tullow said in November it would return to paying dividends, which it suspended in 2015 due to the oil price crash, and expects to pay out at least $100 million from 2019 with an option for a special dividend for this year.
Tullow said it had hedged around 55,700 barrels of oil per day (bopd) at a floor of $56.24 a barrel this year.
Its 2020 hedging position locked in 25,000 bopd with an average floor price protected of $59.00 a barrel.
My personal opinion is DNO will be unsuccessful and Faroe will reject this offer, again. Personally, I'd sell now at the current share price of 152.50 and buy the shares back when the SP drops below 142.00 after 16 January.
Best of luck to all holders.
RNS Number : 0969M
03 January 2019
Not for release, publication or distribution, in whole or in part, in or into any jurisdiction where to do so would constitute a violation of the relevant laws of such jurisdiction
FOR IMMEDIATE RELEASE
3 January 2019
MANDATORY CASH OFFER
FAROE PETROLEUM PLC
· DNO has acquired additional Faroe Shares today and increased its holding to 30 percent of Faroe's Shares
· DNO's Offer of 152 pence for each Faroe Share is now a mandatory offer under the Code (Rule 9)
· Faroe Shareholders who have previously accepted the Offer need take no further action
Oslo, 3 January 2019 - On 12 December 2018, DNO ASA ("DNO"), the Norwegian oil and gas operator, published an offer document (the "Offer Document") containing the full terms and conditions of its cash offer for the entire issued and to be issued share capital of Faroe Petroleum plc ("Faroe") not already owned by DNO at 152 pence per share (the "Offer").
Earlier today DNO announced its intention to extend the closing date for the Offer by a further 14 days to 1.00 p.m. (London time) on 16 January 2019.
DNO has through market purchases acquired 372,890 Faroe Shares for between 147 pence and 148 pence per Faroe Share, which has increased DNO's holding to 30 percent of the Faroe Shares currently in issue. Having acquired Faroe Shares carrying 30 percent or more of the voting rights of Faroe, DNO is required to revise the terms and conditions of the Offer in accordance with Rule 9 of the Code.
The Mandatory Offer
DNO announces that the Offer is now a mandatory offer for the whole of the issued and to be issued share capital of Faroe not already held by DNO at a price of 152 pence per share (the "Mandatory Offer").
The Mandatory Offer is also now being further extended in accordance with Rule 9 of the Code and will remain open for acceptances until 1.00 p.m. (London time) on 18 January 2019 (the "Second Closing Date").
If, after the date of this announcement, any dividend and/or other distribution and/or other return of capital is declared, paid or made or becomes payable in respect of Faroe Shares, DNO reserves the right to reduce the consideration payable under the terms of the Mandatory Offer at such date by an amount up to the amount of such dividend and/or distribution and/or return of capital. If any such dividend and/or distribution and/or return of capital occurs, any reference in the Offer Document or this announcement to the consideration payable under the Mandatory Offer will be deemed to be a reference to the consideration as so reduced.
Offers made under Rule 9 of the Code must be conditional only upon the offeror having received acceptances in respect of shares which, together with shares acquired or agreed to be acquired before or during the offer, will result in the offeror and any person acting in concert with it holding shares carrying more than 50 percent of the voting rights. Accordingly, the Conditions set out in Part A of Appendix 1 of the Offer Document shall immediately cease to apply and shall be replaced in their entirety by the following condition (the "Condition"):
"Valid acceptances being received (and not, where permitted, withdrawn) by not later than 1.00 p.m. (London time) on the Second Closing Date of the Mandatory Offer (or such later time(s) and/or date(s) as DNO may, subject to the rules of the Code, decide) in respect of such number of Faroe Shares as, together with any Faroe Shares acquired or agreed to be acquired (whether pursuant to the Mandatory Offer or otherwise), will result in DNO and any person acting in concert with it holding Faroe Shares carrying more than 50 percent of the voting rights then normally exercisable at a general meeting of Faroe, including for this purpose (to the extent, if any, required by the Panel) any voting rights attaching to Faroe Shares that are unconditionally allotted or issued before the Mandatory Offer becomes or is declared unconditional as to acceptances, whether pursuant to the exercise of any outstanding subscription rights or conversion rights or otherwise. For the purpose of this condition:
(i) Faroe Shares which have been unconditionally allotted but not issued shall be deemed to carry the voting rights which they will carry upon issue; and
(ii) valid acceptances shall be deemed to have been received in respect of Faroe Shares which are treated for the purposes of the Companies Act 2006 as having been acquired or contracted to be acquired by DNO whether by virtue of acceptances of the Mandatory Offer or otherwise."
Save as set out in this announcement, the Mandatory Offer will be subject to the same terms as the Offer set out in the Offer Document.
Faroe Shareholders and persons with information rights will be sent a copy of this announcement to inform them that the Offer has changed from being voluntary to mandatory in nature.
Faroe Shareholders who have previously validly accepted the Offer (and have not withdrawn those acceptances) will automatically be deemed to have accepted the Mandatory Offer by virtue of their prior acceptances and therefore need take no further action.
All Faroe Shareholders are urged to proceed to accept the Mandatory Offer in accordance with the instructions set out below (unless they have previously accepted or sold their Faroe Shares to DNO).
Financing of the Mandatory Offer
The consideration payable by DNO under the terms of the Mandatory Offer will be funded from cash resources available to the DNO Group.
Lambert Energy Advisory Ltd is satisfied that resources available to DNO are sufficient to satisfy in full the cash consideration payable to Faroe Shareholders under the terms of the Mandatory Offer.
How to accept the Mandatory Offer
The deadline for acceptances of the Mandatory Offer is 1.00 p.m. (London time) on 18 January 2019. DNO reserves the right (but will not be obliged, other than as may be required by the Code) at any time and from time to time to extend the Mandatory Offer after such time in accordance with the terms set out in Part C of the Offer Document. Faroe Shareholders who have not yet accepted the Offer and who wish to accept the Mandatory Offer are urged to do so as soon as possible and, in any event, by no later than 1.00 p.m. (London time) on 18 January 2019.
Faroe Shareholders wishing to accept the Mandatory Offer in respect of certificated Faroe Shares, should complete the Form of Acceptance which accompanied the Offer Document relating to the Offer as soon as possible and, in any event, so as to be received by Equiniti Limited by no later than 1.00 p.m. (London time) on 18 January 2019.
Faroe Shareholders wishing to accept the Mandatory Offer in respect of uncertificated shares should do so electronically through CREST so that the TTE instruction settles no later than 1.00 p.m. (London time) on 18 January 2019. You are reminded that, if you are a CREST sponsored member, you should contact your CREST sponsor before taking any action.
Pursuant to the terms of the Offer Document, Faroe Shareholders who have previously validly accepted the Offer (and not withdrawn those acceptances in accordance with the terms of the Offer Document) will automatically be deemed to have accepted the terms of the Mandatory Offer by virtue of their prior acceptances and therefore need not take any further action.
If you have any questions about the Mandatory Offer or are in any doubt as to how to complete the Form of Acceptance or the making of an Electronic Acceptance (as the case may be), please contact Equiniti Limited on 0333 207 6399 or +44 121 415 0973 (if calling from outside the UK). Lines are open from 8.30 a.m. to 5.30 p.m. (London time) Monday to Friday (excluding English and Welsh public holidays).
Compulsory acquisition, cancellation of trading and listing, re-registration
DNO announced, as set out in the Offer Document, that subject to the Mandatory Offer becoming or being declared unconditional in all respects and DNO acquiring or agreeing to acquire (taken together with the Faroe Shares already held by it) 75 percent of the voting rights attached to Faroe Shares, it intends to procure the making of an application by Faroe to the London Stock Exchange for the cancellation of the admission to trading of the Faroe Shares on AIM.
It is anticipated that the application for cancellation of admission to trading of the Faroe Shares on AIM will take effect no earlier than the date that is 20 Business Days after DNO has acquired or agreed to acquire 75 percent of the voting rights attaching to the Faroe Shares.
The cancellation of admission to trading of the Faroe Shares on AIM would significantly reduce the liquidity and marketability of any Faroe Shares not assented to the Mandatory Offer at that time.
If DNO receives acceptances under the Mandatory Offer in respect of, or otherwise acquires, 90 percent or more of the Faroe Shares to which the Mandatory Offer relates, DNO will exercise its rights pursuant to the provisions of Chapter 3 of Part 28 of the Companies Act to acquire compulsorily the remaining Faroe Shares in respect of which the Mandatory Offer has not been accepted.
It is also intended that, following the cancellation of the admission to trading of the Faroe Shares on AIM, Faroe would be re-registered as a private company under the relevant provisions of the Companies Act.
Faroe Share Schemes
The Mandatory Offer extends to any Faroe Shares which are issued or unconditionally allotted (including to satisfy the exercise of options and vesting of awards granted and awards made under the Faroe Share Schemes) whilst the Mandatory Offer remains open for acceptance (or prior to such earlier time and/or date as DNO may, subject to the Code, determine).
Full details on the effect of the Mandatory Offer on outstanding options and awards granted and awards made pursuant to the Faroe Share Schemes and on the choices available to Faroe Share Scheme participants will be set out in separate letters to be sent by DNO to such participants in due course.
The availability of the Mandatory Offer or the distribution of this announcement to Faroe Shareholders who are not resident in the UK or the US may be affected by the laws of the relevant jurisdiction. Such persons should inform themselves of, and observe, any applicable legal or regulatory requirements of their jurisdiction. Faroe Shareholders who are in any doubt regarding such matters should consult an appropriate independent professional adviser in the relevant jurisdiction without delay.
This announcement does not constitute an offer for sale for any securities or an offer or an invitation to purchase any securities. Faroe Shareholders are advised to read carefully the Offer Document.
Documents available on website
This announcement will be made available on DNO's website at https://www.dno.no/en/investor-relations/offer_announcement_26November.
The acquisition by DNO of the entire issued and to be issued share capital of Faroe to be implemented by means of the Mandatory Offer as described in this announcement will, save as set out in this announcement (including Appendix I), be subject to the Condition set out in this announcement and the further terms and conditions of the Offer as set out in the Offer Document and the Form of Acceptance. Accordingly, this announcement should be read in conjunction with the full text of the Offer Document and, in respect of Faroe Shares held in certificated form, the Form of Acceptance, copies of which are available, subject to certain restrictions relating to persons resident in Restricted Jurisdictions, on DNO's website at https://www.dno.no/en/investor-relations/offer_announcement_26November.
DNO reserves the right to elect, with the consent of the Panel, to implement the Mandatory Offer by way of a scheme of arrangement under Part 26 of the Companies Act. In such event, the scheme of arrangement will be implemented on substantially the same terms, so far as applicable, as those which would apply to the Mandatory Offer, subject to appropriate amendments (including to statutory voting requirements) to reflect the change in method of implementing the Mandatory Offer.
Appendix I sets out the conditions and further terms of the Mandatory Offer. Appendix II sets out the sources and basis of certain information used in this announcement.
Lambert Energy Advisory Ltd and Pareto Securities AS have each given and not withdrawn their consent to the publication of this announcement with the inclusion herein of the references to their names in the form and context in which they appear.
The DNO Responsible Persons, whose names are set out in the Offer Document, accept responsibility for the information contained in this announcement (including any expressions of opinion), except that the only responsibility accepted by them in respect of information relating to Faroe, the Wider Faroe Group and the Faroe Directors, which has been compiled from previously published sources, is to ensure that such information is correctly and fairly reproduced and presented. To the best knowledge and belief of the DNO Responsible Persons, who have taken all reasonable care to ensure that such is the case, the information contained in this announcement for which they accept responsibility is in accordance with the facts and does not omit anything likely to affect the import of such information.
RNS Number : 7517K
18 December 2018
18 December 2018
Petrofac issues the following pre-close trading update ahead of the announcement of its full year results for year ending 31 December 2018 on 28 February 2019.
· Trading in line with expectations
· New order intake (1) of US$5.0 billion in the year to date
· Net debt is expected to be around US$250 million at 31 December 2018
Ayman Asfari, Petrofac's Group Chief Executive, commented:
"We are on course to report good results, which reflect solid operational performance in all our businesses and excellent progress delivering our strategy.
"Healthy new order intake in both our core and growth markets reflects our competitiveness in a market that has seen some delays in contract awards. We have also made excellent progress transitioning back to a capital light business with US$0.8 billion (2) of divestments of non-core assets, realising US$0.5 billion of net divestment proceeds to date.
"Looking forward, we remain focused on securing new orders, delivering operational excellence and maintaining a strong balance sheet. We are well-positioned with a differentiated offering, good backlog and revenue visibility, and high levels of tendering for award in 2019."
Engineering & Construction (E&C)
We have made solid progress delivering our portfolio of projects. In Kuwait, the Lower Fars Heavy Oil, Manifold Group Trunkline and KNPC Clean Fuels projects are in pre-commissioning or phased hand-over stages. In Abu Dhabi, we recently achieved a major milestone on the Upper Zakum Field Development with the oil facility ready for start up. Elsewhere, the Jazan North and South tank farms, Fadhili sulphur recovery plant and RAPID projects are nearing completion. The topside platform has also been successfully installed on the Borwin 3 offshore wind project in the North Sea.
We have been awarded new orders worth US$3.8 billion in E&C year to date. Of these, US$2.2 billion were awarded in growth markets, including the Thai Oil refinery project in Thailand, three projects in India and an offshore wind project in The Netherlands. We are currently bidding on more than US$15 billion of tenders scheduled for award in the first half of 2019.
Engineering & Production Services (EPS)
The continued resilience of our operations business, short-term extensions of historical contracts in EPS East and good progress on our EPCm (3) projects are off-setting a challenging market environment for brownfield projects in the North Sea.
We have secured US$1.2 billion of awards and extensions in EPS year to date, predominantly in the UK, Oman, Turkey and Iraq.
Integrated Energy Services (IES)
Net production is forecast to be approximately 6.1 mmboe in 2018, in line with guidance (4). The average realised oil price (net of royalties) for the year is expected to be approximately US$61 per barrel of oil equivalent (2017: US$51/boe) reflecting higher oil prices, production mix and hedging activity.
Group backlog stood at US$10.2 billion at 30 November 2018:
30 November 2018
31 December 2017
Engineering & Construction
Engineering & Production Services
Net debt is expected to be around US$250 million at 31 December 2018 (2017: US$0.6 billion), benefitting from lower capital expenditure, a working capital inflow in the second half of 2018 and approximately US$0.5 billion of net divestment proceeds. We continue to review options for our remaining non-core assets, consistent with our strategy to reduce capital intensity.
Alastair Cochran, Chief Financial Officer, will host a conference call for analysts and investors at 8am today.
(1) New order intake comprises new contract awards and extensions, net variation orders and the rolling increment attributable to EPS contracts which extend beyond five years. Order intake is not an audited measure.
(2) Gross consideration, including firm, deferred and contingent consideration.
(3) Engineering, Procurement and Construction Management.
(4) 2018 full year net production guidance is 6-7 million barrels of oil equivalent (mmboe).
RNS Number : 7426K
Wood Group (John) PLC
18 December 2018
Wood wins $66 million Sellafield control systems framework
Wood has won a contract to supply programmable digital control technologies to the Sellafield nuclear site in Cumbria, UK.
The 10-year framework, worth $66 million, covers all stages of system design, manufacture and assembly of equipment, obsolescence management and maintenance support to project work and decommissioning carried out by Sellafield Ltd.
The contract will help Sellafield Ltd and its wider supply chain to deliver safe, sustainable and cost-effective solutions to full lifecycle controls integration supply at the site.
It was secured by a joint approach from nuclear and automation and controls specialists within Wood, augmenting best-in-class experience from the automotive and oil & gas sectors with nuclear competence, stakeholder relations and site-specific knowledge.
Bob MacDonald, CEO of Wood Specialist Technical Solutions, said: "We are looking forward to working with Sellafield Ltd and demonstrating the strength and depth of controls integration expertise across the whole of Wood, bringing together our nuclear expertise with our automation and controls capability.
"Securing this important framework is proof of the rationale for acquiring Amec Foster Wheeler 12 months ago and a good revenue synergy. We could not have won this contract as separate businesses.
"Our aim is to provide Sellafield Ltd with long-term supply chain capability and capacity, implementing standardised solutions, building innovation into design and delivery, managing obsolescence, and reducing lifecycle costs."
Petrofac awarded Ithaca construction and commissioning contract
Petrofac’s Engineering and Production Services (EPS) business has secured a construction and commissioning contract with Ithaca Energy (UK) Limited (Ithaca) valued in the region of US$10 million.
Under the terms of this reimbursable contract, Petrofac will be responsible for the topsides construction and commissioning works that are to be undertaken on the Ithaca-operated FPF-1 floating production facility, for the tieback of the BP-operated Vorlich field subsea development in the Central North Sea.
As Duty Holder of the FPF-1 asset Petrofac will fully integrate its operations and construction teams in support of the construction work scope, which is due to commence in January 2019 and complete in 2020.
Nick Shorten, Managing Director, EPS, Western Hemisphere, said: “I’d like to congratulate our team on securing this fantastic project which builds not only on our existing relationship with Ithaca Energy, but our wider portfolio of brownfield engineering and construction projects.
“Our track record for effective project delivery, combined with our operational knowledge of the FPF-1 asset, will enable us to deliver an integrated technical solution aligned to our client’s project and commercial objectives. We very much look forward to supporting development of the Vorlich field and continued investment in the North Sea.”
RNS Number : 2467J
03 December 2018
3 December, 2018
Glencore investor update call and management changes
Today, Glencore is hosting an investor update call at 13:00 (UK). Presentation slides will be available from 12:00 (UK).
Glencore is announcing the following management changes:
- Peter Freyberg appointed as Head of Industrial Mining Assets - a newly created position with oversight and responsibility for all of Glencore's Industrial Mining Assets.
- Gary Nagle appointed as Head of Coal Assets. Japie Fullard appointed Head of Ferroalloys Assets.
- Telis Mistakidis to retire as Head of Copper Marketing at the end of the year. Nico Paraskevas appointed Head of Copper Marketing.
- Stuart Cutler to retire as Head of Ferroalloys Marketing at the end of the year. Jason Kluk and Ruan Van Schalkwyk appointed as Joint Heads of Ferroalloys Marketing.
Further detail will be provided on the investor update call.
Details of the call and presentation material are available on our website at http://www.glencore.com/investors
A live audio webcast of the presentation starting at 13.00 (UK) time will be accessible at: https://edge.media-server.com/m6/p/97fmh4a3
The webcast will be archived on our website within 24 hours of the presentation ending.
Please dial in 15 minutes prior to the start time using the number / conference ID below:
Confirmation Code: 6865955
London, United Kingdom: +44 (0)330 336 9411
National free phone - United Kingdom: 0800 279 7204
Johannesburg, South Africa: +27 11 844 6118
National free phone - South Africa: 0800 980 520
Hong Kong, Hong Kong: +852 3018 4588
National free phone - Hong Kong: 800 961 384
New York, USA: +1 929-477-0448
Toronto, Canada: +1 647 794 4605
National free phone - USA/Canada: 888-254-3590
Sydney, Australia: +61 (0)2 9193 3761
National free phone - Australia: 1 800 820 237
Geneva, Switzerland: +41 (0)22 567 5750
National free phone - Switzerland: 0800 222 801
A replay of the call will be available on 3 December until 1 January 2019.
Replay Passcode: 6865955
London, United Kingdom: +44 (0) 207 660 0134
Johannesburg, South Africa: +27 11 062 3065
Hong Kong, Hong Kong: +852 3008 0334
Geneva, Switzerland: +41 (0) 22 567 5709
New York, USA: +1 719-457-0820
Toronto, Canada: +1 647-436-0148
Sydney, Australia: +61 (0) 2 9101 1954
Congratulations to all holders of FPM!
Norway’s DNO has offered to buy Faroe Petroleum Plc for 152 pence per share in cash, valuing the London-listed company at 607.9 million pounds ($779.8 million), said DNO, which already owns just over 28 percent of Faroe.
RNS Number : 5802E
Faroe Petroleum PLC
19 October 2018
Faroe Petroleum plc
("Faroe", "Faroe Petroleum", the "Company")
Rungne Exploration Well in Norway Commences
Faroe Petroleum, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in Norway and the UK, is pleased to announce the commencement of the Faroe-operated Rungne exploration well 30/6-30 in the Norwegian North Sea (Faroe 40% working interest).
The Rungne prospect is located in the Norwegian Sea, c. 30 kilometres north west of the Company's Brasse field and immediately north of the producing Oseberg oil field. The well will target the Middle Jurassic Oseberg Formation, with secondary targets in the Etive and Ness formations.
The total expected vertical depth of the well is approximately 3,490 metres, in water depth of 119 metres. Drilling operations will be undertaken using the semi-submersible Transocean Arctic rig. The current joint venture partners in the PL825 licence are Faroe Petroleum (40% and operator), Lundin Norway AS (30%*) and Spirit Energy Norge AS (30%*). Subject to completion of two recent transactions, the PL825 partnership will consist of Faroe (40% and operator), Equinor Energy AS (30%*), Spirit Energy Norge AS (20%*) and DNO Norge AS (10%*).
Graham Stewart, Chief Executive of Faroe Petroleum commented:
"I am pleased to announce the spudding of the Faroe-operated Rungne exploration well, a near field exploration target which provides us with significant upside potential in one of our core areas. The well is in close proximity to the Faroe-operated Brasse field and existing infrastructure, including the producing Equinor-operated Oseberg oil field.
"This is a very active exploration period for Faroe. We have six exploration wells and one appraisal well committed to drill over the coming 12 months, and many more wells lining up for drilling thereafter. The first of these, the Agar/Plantain exploration well in the UK, is currently being drilled, and this will be followed by the Faroe-operated Brasse East well, to be drilled back to back with the Rungne well.
"These exploration wells are targeting a significant unrisked resource potential net to Faroe of 80-150 mmboe. In addition, the appraisal well on the large Iris-Hades discovery, scheduled for H1 2019, has the potential to prove up very significant resources for the Company."
LONDON (Alliance News) - Oil producer Faroe Petroleum PLC on Tuesday said higher oil prices offset lower production for the first half of 2018, though the company has swung to a significant profit.
Revenue for the six months to June came in at GBP67.8 million, down from GBP80.1 million a year prior. However, adjusted revenue was GBP102.2 million, compared to GBP95.5 million a year before.
Faroe said the statutory figure of GBP67.8 million excludes produced, but not lifted, hydrocarbons.
Production was 13,402 barrels of oil equivalent per day, down from 14,800 barrels of oil equivalent a day a year prior. The drop reflects temporary shut-ins at its Trym and Tambar fields, both in the Norwegian North Sea.
Faroe, which does not pay a dividend, posted pretax profit of GBP73.0 million, after a loss of GBP6.1 million. This was driven by a significant fall in the cost of sales as well as a GBP24.5 million gain on its disposal of Norway's Fenja field.
A highlight during the first half was a discovery at its 20%-owned Iris Hades asset offshore Norway, which added 42 million barrels of oil equivalent to Faroe's total resource, nearly doubling the figure. Faroe has an exploration well planned at Iris Hades for the first half of 2019.
Looking ahead, Faroe is guiding for production for 2018 of between 12,000 and 14,000 barrels of oil equivalent per day.
For the medium term, the target is 35,000 barrels of oil equivalent a day, and Faroe said it is fully funded for this and on track to meet the target organically, though acquisitions are still to be considered.
Faroe has a six well confirmed exploration plan, and the company plans to keep developing existing assets.
Chief Executive Graham Stewart commented: "I am pleased to announce the results for the first half of 2018 - a period of strong profitability, effective portfolio management and material exploration success.
"In the medium term we are targeting material increase in shareholder value and cashflow with our fully funded investment programme across the portfolio, encompassing exploration, appraisal, development and production."
He added: "I remain confident in our ability to deliver our stated near to medium term production growth target of 35,000 barrels of oil equivalent per day."
Shares were 0.3% higher on Tuesday morning at 154.40 pence each.
EnQuest aborted sales talks for Kraken stake due to debt deadline - sources
EnQuest switched from plans to sell a stake in its flagship North Sea oilfield to borrowing money against it after two sets of sale talks had to be abandoned as a deadline for a debt repayment approached, industry and banking sources said.
* Bids from Polish entity, private group abandoned - sources
* EnQuest $2 bln net debt more than 3 times market value
* Opted for loan against ringfenced stake instead of sale (Updates paragraph 10 on debt position)
By Ron Bousso and Shadia Nasralla
LONDON, Sept 12 (Reuters) - EnQuest switched from plans to sell a stake in its flagship North Sea oilfield to borrowing money against it after two sets of sale talks had to be abandoned as a deadline for a debt repayment approached, industry and banking sources said.
EnQuest, with almost $2 billion in debt, launched earlier this year the sale of a 20 percent stake in the heavy oil Kraken field, one of the largest North Sea developments which started production in June last year.
The sale of the stake would have pumped welcome cash into the coffers of the company which has to pay back just under $200 million in debt in October.
The sale process, initially expected to raise up to $400 million, was run by investment bank Jefferies.
London-based EnQuest received an offer for a stake in Kraken from Lotos, a Polish state-backed oil and gas company, several months ago, according to the sources.
The talks reached advanced stages, but dragged on and could not be concluded in time, according to one source.
Lotos declined to comment.
A second offer from a private company was rejected by EnQuest after the bidder revised its terms at the last minute, the sources said.
After the two failed approaches, EnQuest decided to borrow $175 million against 15 percent of Kraken's cashflow from Oz (Och-Ziff) Management to be paid back within five years.
The move came as the company is saddled with net debt which stood at $1.97 billion at the end of June. Its market value is around $564 million.
"There was very significant interest in the farm-out process for Kraken and we received a number of offers from both industry participants and financial institutions," EnQuest said in a statement to Reuters.
"The financing agreement with Oz Management was selected as the preferred economic option for EnQuest at this time, allowing us to retain significant exposure to the upside potential on Kraken."
EnQuest, which specialises in squeezing more barrels out of ageing fields, holds 70.5 percent of the Kraken field while Cairn Energy owns the rest.
Oil production from Kraken averaged 31,000 barrels per day (bpd) in the first six months of 2018, slightly below expectations due to issues with water injection to increase oil recovery and bad weather.
It has since picked up to as much as 36,000 bpd. Earlier this year, it had reached as much as 50,000 bpd.
EnQuest shares tumbled around 13 percent on Friday after the company announced a discounted share issue to buy the remaining 75 percent in the Magnus oilfield from BP to shore up future output.
Its next debt repayments are $175 million due in April and $100 million in October 2019, it said on Friday.
"The concern with Enquest's equity value remains its sensitivity to $1.97 billion of net debt ... we cannot rule out future approaches to the market," Jefferies said in a note on Monday. (Editing by Mark Potter)
RNS Number : 2005Z
Vodafone Group Plc
30 August 2018
VODAFONE GROUP ANNOUNCES MERGER BETWEEN VHA AND TPG
Vodafone Group Plc ("Vodafone") announces that Vodafone Hutchison Australia Pty Limited ("VHA") and TPG Telecom Limited ("TPG") have agreed a merger to establish a new fully integrated telecommunications operator in Australia ("MergeCo").
The merger brings together leading talent in Australia's mobile and fixed broadband sectors and accelerates the benefits of the substantial network investments made by both companies. The merged company will be a more powerful challenger to Telstra and Optus in Australia, with an integrated fixed and mobile offering. It will also be better able to invest in next generation mobile and fixed networks and drive innovation, service and product improvements to benefit Australian telecoms customers.
Vodafone and Hutchison Telecommunications (Australia) Limited ("HTAL") will each own an economic interest of 25.05% in MergeCo, with TPG shareholders owning the remaining 49.9%. The Board of MergeCo will comprise: David Teoh, as Chairman (currently CEO and Chairman of TPG), Iñaki Berroeta as Managing Director and CEO (current CEO of VHA), existing TPG directors Robert Millner and Shane Teoh, two nominees of Vodafone, two nominees of HTAL, and two new independent directors. MergeCo will be listed on the Australian Securities Exchange (ASX) and called TPG Telecom Limited. There are no changes currently planned to any of the existing brands of either VHA or TPG.
The merger is expected to generate substantial cost synergies from the combination of two complementary networks, rationalisation of duplicated costs and economies of scale. Additionally, the combined entity will benefit from revenue synergies through cross-selling of products across both VHA and TPG's corporate and consumer customer bases.
The agreed merger ratio implies an enterprise value for VHA of A$7.5 billion. This is equivalent to valuing VHA at 7.4x EV/LTM June 2018 EBITDA and 19.2x EV/LTM June 2018 operating free cash flow (OpFCF). MergeCo will have a pro forma enterprise value of approximately A$15.0 billion, revenue of over A$6.0 billion, EBITDA of over A$1.8 billion and OpFCF of A$0.9 billion. Approximately A$2.0 billion of VHA's existing debt will be contributed to MergeCo, which will have pro-forma leverage of approximately 2.2x net debt/EBITDA[i] and an expected strong investment grade credit profile. The strong cash generation of the combined entity is expected to support an attractive dividend. It is intended that MergeCo will pay a dividend of at least 50% of net profit after tax adjusted for one-off restructuring costs and certain non-cash items ("Adjusted NPAT")[ii] and have a medium-term target leverage range of 1.5-2.0x net debt/EBITDA. Vodafone's interest in MergeCo will be accounted for under the equity method.
Vodafone and HTAL's shareholdings in MergeCo, and the remaining VHA net debt of approximately A$4.8 billion that will not be contributed into the merged company, will primarily be held through an entity jointly owned by the Vodafone Group and HTAL. Debt held through this entity will be serviced by dividends from MergeCo, and will not be consolidated by Vodafone or HTAL. Vodafone will provide a guarantee on approximately A$2.4bn of this debt, lower than the approximately A$3.3 billion guarantee that Vodafone currently provides for VHA's debt.
Vodafone, HTAL and David Teoh have entered into a 24 month standstill arrangement in relation to their shareholdings in the combined business.[iii]
Nick Read, CEO-designate, Vodafone, said: "This transaction accelerates Vodafone's converged communications strategy in Australia and is consistent with our proactive approach to enhance the value of our portfolio of businesses. The combined listed company will be a more capable challenger to Telstra and Optus, and will be much better placed to invest in next generation mobile and fixed line services to benefit Australian consumers and businesses."
In parallel to the merger agreement, TPG and VHA have signed a separate Joint Venture Agreement. The scope of the joint venture is to acquire, hold and licence 3.6 GHz spectrum. The Government is auctioning 125 MHz of 3.6 GHz band spectrum, with the auction expected to commence in late November 2018. The joint venture will register as a participant in the auction. In addition, the parties will negotiate with the aim of expanding the business of the joint venture in future, including to acquire future spectrum licenses and/or facilitate various forms of efficient spectrum and network sharing including a shared 5G Radio Access Network. The Joint Venture Agreement is ongoing, and will not terminate if the merger fails to proceed.
It is anticipated that the merger will complete in 2019, subject to approval from TPG shareholders and regulatory authorities.
RNS Number : 2030Z
Solo Oil Plc
30 August 2018
FOR IMMEDIATE RELEASE
SOLO OIL PLC
("Solo" or the "Company")
Disposal of interest in Horse Hill Developments Limited
for shares in UK Oil and Gas plc
Solo (AIM: SOLO), the natural resources investment company focused on acquiring and developing a diverse global non-operated portfolio of strategic oil and gas assets, today announces that the Company has agreed to enter into a conditional sale and purchase agreement ("SPA") to dispose of its entire 15% interest in Horse Hill Developments Limited ("HHDL") to UK Oil and Gas plc ("UKOG") for a total cash consideration of £4.5 million together with a simultaneous purchase of 234,042,221 new ordinary share in UKOG equivalent to a 4.2% interest in UKOG.
For a total consideration of £4.5 million UKOG has agreed to acquire Solo's 15% shareholding and loan in HHDL. With an effective date of 28 August 2018, the total consideration will be satisfied through the issue of 234,042,221 new ordinary shares in UKOG ("Consideration Shares"). The Consideration Shares are calculated based on the 10-day volume weighted average price to 24 August 2018 of 1.92 pence.
Based on the £4.5 million consideration Solo has made an investment return of 50% on the additional 5% it acquired in February 2018, and 45% on its total investment in HHDL since February 2014.
Following completion of the transaction, Solo will hold 4.2% of the issued share capital of UKOG. On completion UKOG will hold a 71.9% interest in HHDL which in turn holds a 65% interest in two onshore UK petroleum exploration licences, PEDL 137 and PEDL 246, which contain the Horse Hill oil discovery.
Completion of the disposal, which will be announced in due course, is conditional on HHDL consent. In the year ended December 2016, HHDL made a loss of £146,208.
Non-executive Chairman, Alastair Ferguson, commented:
"This transaction is in line with our investment strategy and provides evidence of our now proven ability to monetise assets within our portfolio and generate value for shareholders. The transaction enables Solo to retain significant exposure to the Horse Hill project as it undergoes the pivotal testing activities, the results of which have been very positive to date."
Solo's Managing Director, Dan Maling, added:
"The Board has seized the opportunity to monetise its investment in HHDL and is pleased with the return we have made on our investment. The transaction enables a more liquid balance sheet and frees Solo from future direct operational expenditure at Horse Hill, but ensures we retain the exposure to the exciting upside potential of the projects within UKOG's diverse portfolio. Importantly, we will retain the option to monetise our shares in UKOG at the appropriate time."
Further AIM Disclosures
1. The Consideration Shares will be held available for sale. As at 30 June 2018, the carrying value of the 15% interest in HHDL was £3.1 million. The market value of the Consideration Shares was £5.4 million based on the closing price of UKOG shares on 28 August 2018 of 2.3p.
2. UK Oil and Gas plc ("UKOG")
UKOG is an operating company with shares listed and traded on AIM. The current portfolio includes eight oil and gas assets under Petroleum and Exploration Licences, all of them onshore:
(a) Avington - UKOG holds a 5% interest
(b) Broadford Bridge - operated by UKOG's 100% owned Kimmeridge Oil & Gas Limited.
(c) Holmwood - UKOG has a 40% interest
(d) Horndean - UKOG has a 10% interest
(e) Horse Hill - UKOG currently holds a 32.435%in the Horse Hill licences and a 49.9% interest, in Horse Hill Developments Ltd. In addition It has currently entered into conditional SPA's which would, if completed take UKOG's holding to 46.735% in the Horse Hill licences and a 71.9% in Horse Hill Developments Ltd.
(f) Isle of Wight - UKOG has a 65% interest
(g) Markwells Wood - UKOG owns 100% of Markwells Wood.
Interim results for the six months ended 31 March 2018 show total assets of £32,390,000.
RNS Number : 2044Z
UK Oil & Gas PLC
30 August 2018
UK Oil & Gas PLC
("UKOG" or the "Company")
Acquisition of Further 15% Interest in Horse Hill Oil Discovery and Licences.
PEDL137 & PEDL246 Licences, Weald Basin, UK
UK Oil & Gas PLC (London AIM: UKOG) is pleased to announce that it has entered into a sale and purchase agreement with Solo Oil Plc ("Solo") to acquire their 15% shareholding in Horse Hill Developments Ltd ("HHDL"), the operator and 65% interest holder in the Horse Hill-1 ("HH-1") Portland and Kimmeridge Limestone oil discovery and 55 square mile (143 km2) PEDL137 and PEDL246 licences ("the Licences"). Upon completion the Company will hold a majority 71.9% HHDL shareholding, equating to 46.735% beneficial interests in the Licences, the largest single beneficial interest-holding in both Licences.
As previously reported in July and August, a comprehensive 150-day extended well test programme, designed to confirm the HH-1 well's commerciality, is in progress. Results to date from the Portland oil pool have been very positive. Testing of the two Kimmeridge Limestone oil pools will commence following completion of the Portland test.
For a total consideration of £4,500,000, the Company will purchase Solo's 15% shareholding in HHDL, equating to a further 9.75% beneficial interest in the Licences. The total consideration of £4,500,000 with an effective date of 28 August 2018, will be satisfied through the issue of 234,042,221 new ordinary shares in UKOG ("Consideration Shares"). The Consideration Shares are calculated based on the 10-day volume weighted average price from 24 August 2018 of 1.92 pence.
In addition, and to ensure parity with the acquisition of 7% of HHDL announced on 20 August 2018 we have agreed with Gunsynd PLC ("Gunsynd") and Primorus Investments PLC ("Primorus") to issue a further 2,600,469 and 6,501,173 new ordinary shares respectively in UKOG so that both the Solo transaction and the Gunsynd and Primorus transactions will be completed at £300,000 per 1% of HHDL.
Completion of these acquisitions, which will be announced in due course, is conditional on HHDL consent. In the year ended December 2016, HHDL made a loss of £146,208.
Stephen Sanderson, UKOG's Chief Executive, commented:
"This further strategic acquisition firmly cements UKOG as the dominant player in the Horse Hill Portland and Kimmeridge oil discoveries and Licences. UKOG's three recent HHDL acquisitions provide a valuable controlling interest and exemplify the rationale behind our recent change of AIM status to an operating company. With the positive Portland test results to date, UKOG, supported by its remaining three coventurers, can now steer the way towards permanent HH oil production in 2019."
Qualified Person's Statement
Rob Wallace, UKOG's principal technical advisor, who has over 40 years of relevant experience in the oil industry, has approved the information contained in this announcement. Mr Wallace is a Chartered Scientist, Chartered Geologist and Fellow of the Geological Society of London, an active member of the American Association of Petroleum Geologists, a member of the Petroleum Exploration Society of Great Britain and a member of the South African Geophysical Society.