Restructuring and raise of new equity in Discover Petroleum AS
Published on Wed, 24/06/2009 - 13:55
Norsk versjon her.
Following a challenging period over the last 9 months facing a difficult financial market, the company's largest shareholders, bondholders, warrantholders and main contractor yesterday, on 23 June 2009, reached an agreement for the restructuring of the company's financial relations and commitments, and the contribution of new equity. The solution will in the short term provide a good foundation for the funding of the company's exciting exploration program in 2009 and 2010, and in the longer term provide Discover with a good foundation for securing financing beyond 2010.
The solution agreed by the parties yesterday consists of a contribution of NOK 65 million in new equity from the company's largest existing shareholders, the conversion of NOK 62.7 million worth of bonds into equity, the postponement of additional payments of interest and installments until 2010, and cancellation of outstanding warrants in the company together with a significant reduction of contractual obligations towards a key contractor and partner. Additionally, the company and its financial advisor, Pareto Securities AS, are in the process of completing a private placement towards new investors. The company yesterday issued a calling notice for an annual general meeting on Tuesday 30 June 2009 to, amongst other items, carry out the agreed measures.
The Managing Director of the company, Mr Lars T. Bjerke, states in a comment:
"The company is very satisfied that the shareholders, bondholders and main contractor supported the company and gave significant contributions to a solution which will secure the financing of the company's exploration program for 2009 and 2010, and which also establishes a sound foundation for securing financing in the years following 2010. This demonstrates confidence in the company and our strategy, and establishes secure working conditions for our organization during the exiting period the company now faces. In 2009, Discover shall participate in two exploration wells on the Norwegian Continental Shelf and will carry out comprehensive seismic and electromagnetic surveys. The company has successfully participated in both APA 2008 and the 20th licensing round resulting in awards of interests in very promising production licenses, which also provides demanding challenges in the longer term. Furthermore, the company actively continues its preparations for the upcoming licensing rounds in the northern parts of the Norwegian Continental Shelf. We now look forward to embark on these important tasks with the assurance this financing gives us."
Contact person: Mr Lars T. Bjerke, Managing Director
Mobile phone number: +47 4144 0075
Mr Lars T. Bjerke, Managing Director