|
Heritage Oil sells Kurdistan stake in
$450m Genel deal
22.8.2012 |
|
|
|
Genel Energy Buys Kurdistan
Assets From Heritage Oil
August 22, 2012
LONDON,— Heritage Oil Plc (HOIL.L) will sell
part of a gas block and borrow money from Genel
Energy Plc (GENL.L) to raise $450 million, easing
concerns about how it will fund oilfield purchases
in Nigeria.
Heritage Oil shares jumped 18 percent after the
company said it will sell a 26 percent stake in
Miran Block in Iraq's autonomous Kurdistan region to
Genel and will take a $294 million loan from the
company.
The cash will partly fund Heritage Oil's acquisition
of a stake in Nigeria's OML 30 oilfield assets
announced last month.
"Miran sale price is attractive, but the cash is
more welcome," RBC Capital Markets' Al Stanton said.
Heritage Oil earlier planned to fund a portion of
the OML 30 deal through a rights issue.
"There is no need to proceed with the rights (issue)
and any capital raising is dropped," Heritage Oil
Chief Financial Officer Paul Atherton told Reuters
on Tuesday.
The company will sell the Miran Block stake and an
interest in a related joint operating agreement for
$156 million, which would increase Genel's holding
in the block to 51 percent.
Heritage Oil can repay the loan by transferring
ownership of its unit Heritage Energy Middle East
Ltd, which currently operates the Miran Block, to
Genel.
"After we've completed the acquisition of OML 30 ...
either party has the right to exercise this option,
and we would expect to complete the same, by way of
cancelling the loan in exchange for the remaining
rights in Miran," Atherton said.
Heritage Oil, which also operates in Tanzania and
Russia, will have no presence in Kurdistan after
exiting Miran Block.
Conceptual engineering design studies have focused
on the potential for early production of between 80
million and 180 million standard cubic feet per day
(MMscfd) at Miran for local markets beginning in
2013,www.ekurd.net
according to Heritage Oil's website.
This will be followed by an appraisal and full
development of between 560 and 750 MMscfd in 2015
for gas export.
Genel's primary assets are oil and gas licenses in
Kurdistan and has an interest in six production
sharing contracts with the Kurdistan Regional
Government.
"We aim to build a material gas business alongside
our existing oil business in the medium term," Genel
Energy Chief Executive Tony Hayward said.
Heritage Oil shares were up nearly 18 percent at
197.98 pence on the London Stock Exchange at 1353
GMT on Tuesday. They rose 17 percent to C$3.05 on
the Toronto Stock Exchange.
Genel's stock was down marginally on the London
Stock Exchange.
By Brenton Cordeiro - Reuters
Copyright ©, respective
author or news agency,
Reuters
Top |
Kurd Net
does not take credit for and is not responsible for the
content of news information on this page
|
®
