Atlantic Petroleum P/F
Atlantic Petroleum enters the Norwegian Continental Shelf through acquisition of Emergy Exploration AS
Tórshavn, Faroe Islands, 2012-11-13 16:32 CET --
Atlantic Petroleum (OMX: FO-ATLA) announces that Atlantic Petroleum has today issued a voluntary offer for 100% of the shares in Emergy Exploration AS (“Emergy”) (the “Offer”) based in Bergen, Norway.
Emergy Exploration is an independent, upstream oil and gas company focused on the Norwegian Continental Shelf (the “NCS”).
The Offer for 100% of the shares in Emergy is USD 12.7 million to be paid in cash or a combination of cash and shares in P/F Atlantic Petroleum, of which 50% will be paid in cash upon acceptance of the Offer and 50% will be paid at the latest on 31st January 2013 in cash, shares or a combination of cash and shares. The offer has been pre-accepted by the holders of 90% of the Emergy shares.
Following the transaction, Emergy will change name to Atlantic Petroleum Norge AS with Emergy’s current CEO, Jonny Hesthammer, taking up the position as Managing Director.
The transaction is an important step in Atlantic Petroleum’s strategy of combining organic growth with targeted acquisitions and provides a solid base and organisation for accelerated growth through exploration on the NCS, which is a highly prolific and prospective hydrocarbon region with 2 of the world’s 5 largest discoveries over the last two years.
Emergy has recently been pre-qualified by the Norwegian Ministry of Petroleum and Energy as a licensee on the NCS. This allows Atlantic Petroleum Norge AS to participate in the upcoming 22nd Norwegian licensing round with deadline for applications on 4th December 2012 and with awards expected by the summer of 2013.
Atlantic Petroleum Norge AS has an experienced team of professionals led by Dr. Hesthammer with a strong track record on the NCS and a leading competence within interpretation and integration of seismic and electromagnetic data used to high grade exploration prospects and mitigate exploration risk.
After the completion of the transaction, Atlantic Petroleum will receive 15% ownership in license PL270 operated by VNG Norge AS in the northern part of the Norwegian North Sea containing 3 discoveries including the Agat gas discovery which, according to VNG Norge’s estimate, will add 9 mmboe mean contingent resources net to Atlantic Petroleum and 10% ownership in license PL559 operated by Rocksource ASA in the Norwegian Sea containing numerous exploration prospects with significant resource potential.
Atlantic Petroleum regards the NCS as a very attractive region to operate in with its significant remaining exploration potential, stable operating environment and a fiscal regime that is particularly attractive for exploration activities, with a 78% tax refund of exploration expenses from the Norwegian authorities, refunded in cash the calendar year after the expenses are incurred.
ABG Sundal Collier Norge ASA has acted as financial advisor to Emergy in the transaction.
Ben Arabo, CEO of Atlantic Petroleum comments: “Numerous recent large and giant discoveries offshore Norway have demonstrated the significant potential in the region. The acquisition of Emergy initiates Atlantic Petroleum’s effort to tap into this potential. With this transaction we are not only gaining access to the Norwegian shelf, but we are also gaining an experienced team of professionals with a strong track record. We will use the solid base that Emergy provides to grow our portfolio and activities on the Norwegian Continental Shelf.”
Jonny Hesthammer, CEO of Emergy comments: “We are very pleased with this transaction which will allow us to participate in numerous exciting opportunities on the Norwegian Continental Shelf in the years to come. Our new industrial owner, Atlantic Petroleum, has a solid financial base and a highly competent technical and commercial team which we look very much forward to become a part of.”
Further details can be obtained from Ben Arabo, CEO, tel +298 350100 (email@example.com). This announcement will be available, together with other information about Atlantic Petroleum, on the Company's website: www.petroleum.fo.
On the website, it is also possible to sign up for the Company’s e-mail newsletter.
Invitation to Webcast & Teleconference
A webcast/teleconference will be held on Wednesday 14th November at 10:30am CET to present the transaction. Details of the webcast will be available on the Company´s website www.petroleum.fo.
Please see the attached investor presentation for further details about the transaction.
Announcement no. 32/2012
P/F Atlantic Petroleum
Yviri við Strond 4
P.O. Box 1228
Telephone +298 350 100
Fax +298 350 101