The share issue is now completed and finalized with a combined subscription of about 19 million shares. Based on the previous announcement dated 25.06.2008, wherein the subscription due date was extended from the 25.06.2008 to 07.07.2008, the share issue is implemented at a subscription rate of NOK 0,25 per share which is in line with the current share price and volume developments recently. The board of directors has allocated the shares in today’s board meeting and the share issue is thus completed.
Allotment letters will hereafter be sent to the subscribers and payment will be due by about the 16th July 2008.
Insiders that have subscribed to the share issue are the following:
- Loge Resources AS rep/Per Gunnar Løge with 4.000.000 new shares
- Kjell Øivind Hansen with 4.400.000 new shares
- Øistein Nyberg with 200.000 new shares
- Realium Invest AS (rep/Arild Tolfsen) – with 1.000.000 new shares
As previously announced the purpose of the share issue has been to raise capital to conduct a core well drilling program on the oil sands area ‘The Chard’. The objective is to complete the drilling program during the winter season 2008/09. The planning and preparations of this may now commence. The assessment is to prove up the reserves by conducting a thorough well drilling program and evaluation on the basis of the results.
Seeing as the subscription and the proceeds from the share issue are lower than originally intended our plan must now be adjusted. The market and timing for the share issue has not been optimal, but the board remains resolute and optimistic about the company’s future development.
Further financing opportunities, which the board deems realistic and of a less demanding process, will be conducted in the near future. The short term goals for the board are communicated in the annual report for 2007 and at the General Meeting of Shareholders in June, remains as follows: ‘
“To create added shareholder value by upgrading reserves, future production and arrange for the sale of assets.”
The long term goals are;
“To develop long term sustainable shareholder value through efficient and profitable gas and oil production internationally. In this phase Canada is seen as a main priority for such ventures.”
In conjunction with these goals we have communicated the opportunity we now have through a negotiated right to acquire new potential land acreage within conventional gas and oil areas. Whereby the company would obtain a new 46.000 acre area in the northwestern part of Alberta right in the middle of existing production and infrastructure. This area is assessed to be valuable in contributing to the realization of necessary operating activity and cashflow in order to successfully create added shareholder value from the company’s current assets during 2009/2010. A continuance and activation of this agreement will depend on whether the company can raise further capital this fall. If it turns out that this is not a possible the board will have to revise the company ambitions by reducing the scope of operational activity during the winter of 2009.
Preparations have begun for the qualification of the company for operational activity in two areas that will confirm the company’s hydrocarbon assets and provide a basis for a final field development program. Both of the company’s Canadian registered subsidiaries will apply for operational activities in specific areas. This work is estimated completed by the end of August.
These agreements and the current assets, that as of present can be realized, do not seem to be reflected in the current valuation of the company, and particularly following the recent decline in the share price. The board realizes the challenges in getting the values and opportunities in existing assets and networks, especially in Canada, appreciated by the shareholders and market. Therefore it is an imperative to develop a situation whereby the existing assets are realized as soon as possible. This work is necessary in order to obtain alternative financing structures for the necessary activities that will best serve the shareholders and the future of the company.
We wish all shareholders a very good summer.
Nordic Petroleum ASA
For questions or info call Arild Tolfsen, CEO
Telephone: +47 930 99 859