Despite an extremely turbulent and challenging stock market Nordic Petroleum has conducted and completed the share rights issue at the initial offer price. Total subscriptions amount to 24 million shares at a share price of NOK 0,25 per share. This yields NOK 6 million in gross proceeds from the share rights issue.
The Board will allocate the shares at the upcoming board meeting, and will be allocated according to the received subscriptions. Notification of allotment and eventual payment instructions will be sent to the Applicants with payment expected on or around 12.12.2008.
Insiders that have subscribed in the share issue are the following:
- Loge Resources AS /Per Gunnar Løge with 1.600 000 new shares
- Per Gunnar Løge with 1.200.000 new shares
- Kjell Øivind Hansen with 2 400 000 new shares
- Liv Runi-Syvertsen with 100 000 new shares
- Orest Senkiw with 100 000 new shares
The purpose of the share issue has been to raise capital to finance the field development of Skyway and Mega Pyramid, which were planned startup during 4Q 2008 and 1Q 2009.
In a very demanding equity market that we have presently the company has raised fewer funds than expected, the management and board’s view is that the company must focus these funds where they will have the greatest impact and support the company’s asset values. This does not relate a change of course for the company, but the development pace will initially be reduced.
The company is entirely without interest-bearing debt and thus does not need to worry about refinancing of any current debt. Given that Skyway is finalized and drilled during the New Year we can expect to see returns during the first half of 2009. Income from Mega Pyramid will be dependent upon when drilling is begun.
Going forward the board and management will continuously work on obtaining financing from various means. This includes amongst others directed share issue towards new investors domestically and internationally, Joint Venture agreements for operation and development of fields, as well as full or partial sale of assets.
The short term goals for the board as, previously communicated, are:
Create shareholder value through upgrading of reserves, future production & possible sale of assets.
The long term mission is;
Develop long term shareholder value through efficient upstream petroleum activities internationally. In this phase Canada is the main priority.
The acquisition agreement for the Mega Pyramid conventional gas and oil areas, comprising 46 000 acres in Northwestern Alberta, is now completed. In addition to these areas we see the possibilities in our Alberta network to enter into new lucrative agreements and ventures that will yield added value to our shareholders.
The company has during the share rights issue worked out all formalities and internal work routines which has resulted in authorization as a registered Operator in Alberta, Canada. The development program for Mega Pyramid, to be carried out during the 1Q 2009, is under development for authorization by the government. So that contractual obligations with contractors can be entered into at the earliest convenience. This includes construction and clearing of well sites as well as entering into agreements with drilling and service contractors. Preparations have already begun and will be adjusted according to the available financing.
Negotiations with Skyway and Masters are coming to conclusion with only a few outstanding issues remaining. Masters are expected to return with a response on these issues within a short time frame.
For more information visit our homepage: www.nop.as
Nordic Petroleum ASA
For more information contact managing director Arild Tolfsen.
Mobile 930 99 859 – email: email@example.com