Salamander Energy plc announces an underwritten Rights Issue to raise net proceeds of approximately $201 million (£124 million)
Enhancing core value and accelerating exposure to material upside potential
Rights Issue
- The Board of Salamander today announces a fully underwritten 13 for 20 Rights Issue to raise proceeds of approximately $201 million (£124 million), net of expenses, through the issue of up to 100,654,935 New Ordinary Shares.
- New Ordinary Shares will be issued at a price of 130 pence each, representing a discount of 49 per cent. to the closing price of 256.1 pence per Existing Ordinary Share on 26 April 2012, the last dealing day prior to the announcement of the Rights Issue and a 37 per cent. discount to the theoretical ex-rights price of 206 pence per New Ordinary Share calculated by reference to the closing price on the same day.
- The Rights Issue has been fully underwritten by Goldman Sachs International, Oriel Securities Limited and RBC Capital Markets. Rothschild is acting as Financial Adviser to the Company.
Use of proceeds
- The net proceeds of the Rights Issue will be used to maximise value from the existing focused portfolio through a combination of:
- enhancement of the Bualuang oil field, Gulf of Thailand through the addition of platform-based oil processing facilities which are expected to reduce operating costs, extend the economic field life and potentially release further recoverable oil volume;
- contracting a second rig in the Gulf of Thailand to accelerate exploration and appraisal drilling with the plan to drill at least six exploration wells in parallel to the development drilling programme to be undertaken by the Atwood Mako rig; and
- investment in a potentially transformative exploration drilling campaign in the North Kutei Basin, Indonesia.
James Menzies, Chief Executive of Salamander Energy, commented:
“During 2011 Salamander Energy refocused its portfolio on three core areas where it has large, operated interests with material upside exposure and high quality, anchor assets. The rights issue provides us with the additional capital to accelerate our drilling programme around these assets and to aggressively pursue the opportunities they present. The Board believes that Salamander is very well positioned to create and capture value for shareholders and we look forward to a busy and productive programme.”
Documentation
The Prospectus containing details of the Rights Issue is expected to be posted to Shareholders and made available on the Company’s website (www.salamander-energy.com) shortly.
Analyst and investor presentation
A meeting for analysts and investors will be held today, 27 April 2012, at 10.00 a.m. at The Lincoln Centre, 20 Lincoln’s Inn Fields, London WC2A 3ED. Presenters will include James Menzies, Chief Executive Officer; Jonathan Copus, Chief Financial Officer and Mike Buck, Chief Operating Officer.
There will be a live webcast available at www.salamander-energy.com. This will be recorded and will be accessible on the Investor Relations section of the Salamander website.
Enquiries:
Salamander Energy plc
James Menzies, Chief Executive Officer
Jonathan Copus, Chief Financial Officer
Geoff Callow, Head of Corporate Affairs
020 7432 2680
Goldman Sachs International (Joint Sponsor and Joint Bookrunner)
Andrew Fry
Dan Martin
020 7774 1000
Oriel Securities Limited (Joint Sponsor and Joint Bookrunner)
Jonathan Walker
Ashton Clanfield
020 7710 7600
RBC Capital Markets (Joint Bookrunner)
Joshua Critchley
Matthew Coakes
020 7653 4000
Rothschild (Financial Adviser to the Company)
Neeve Billis
Nigel Himsworth
020 7280 5000
Brunswick Group LLP (PR Adviser to the Company)
Patrick Handley
Fiona Micallef-Eynaud
020 7404 5959
Shareholder enquiries
If you have further questions, please telephone the Shareholder helpline on the numbers set out below. This helpline is available from 8.30 a.m. to 5.30 p.m. Monday to Friday (except bank holidays) and will remain open until 28 May 2012. Calls to the 0871 384 2050 number from inside the UK are charged at 8 pence per minute (excluding VAT) from a BT landline; other service providers' charges may vary. Calls to the +44 121 415 0259 number from outside the UK are charged at applicable international rates. Different charges may apply to calls made from mobile telephones and calls may be recorded and monitored randomly for security and training purposes.
Shareholder Helpline
0871 384 2050 (from inside the UK) or +44 121 415 0259 (from outside the UK)
Please note that, for legal reasons, the Shareholder Helpline will only be able to provide information contained in the Prospectus and information relating to the Company's register of members and will be unable to give advice on the merits of the Rights Issue or to provide financial, tax or investment advice.
About Salamander
The Group is an independent upstream oil and gas exploration and production business focused on South-East Asia. The Company has built a balanced portfolio of exploration, development and production assets and the Directors believe the Company has established a strong competitive position in South-East Asia.
The Group's asset portfolio includes three producing fields and three assets under development, a number of discoveries under appraisal and an inventory of exploration leads and prospects. The Group holds both operated and non-operated positions in its assets. Holding operated positions in its core assets allows the Group to use its expertise in exploration, appraisal, development and production to create additional value for its Shareholders.
The Group organises its assets around three core geographical focal points where it believes it has a competitive edge: (1) the Greater Bualuang Area in the Western Gulf of Thailand, (2) the Greater Kerendan Area in the Barito Basin, Central Kalimantan, Indonesia and (3) the North Kutei Basin in East Kalimantan, Indonesia. These focal points are supplemented by additional assets elsewhere in the South-East Asian region.
Salamander has offices in London, Singapore, Jakarta, Ho Chi Minh City and Bangkok.
More information is available on www.salamander-energy.com
THIS ANNOUNCEMENT (AND THE INFORMATION CONTAINED HEREIN) DOES NOT CONSTITUTE AN OFFER TO SELL OR A SOLICITATION OF AN OFFER TO PURCHASE ANY SECURITIES IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, NEW ZEALAND, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION. SECURITIES MAY NOT BE OFFERED FOR SALE IN THE UNITED STATES ABSENT REGISTRATION UNDER THE US SECURITIES ACT OF 1933 (THE "SECURITIES ACT") OR AN EXEMPTION FROM REGISTRATION. THE SECURITIES DESCRIBED IN THIS ANNOUNCEMENT WILL NOT BE REGISTERED UNDER THE SECURITIES ACT AND, SUBJECT TO CERTAIN LIMITED EXCEPTIONS, WILL NOT BE OFFERED FOR SALE IN THE UNITED STATES.
THIS ANNOUNCEMENT IS AN ADVERTISEMENT AND NOT A PROSPECTUS. NEITHER THIS ANNOUNCEMENT NOR ANY PART OF IT SHALL FORM THE BASIS OF OR BE RELIED ON IN CONNECTION WITH OR ACT AS AN INDUCEMENT TO ENTER INTO ANY CONTRACT OR COMMITMENT WHATSOEVER. INVESTORS SHOULD NOT SUBSCRIBE FOR OR PURCHASE ANY SHARES REFERRED TO IN THIS ANNOUNCEMENT EXCEPT ON THE BASIS OF INFORMATION IN THE PROSPECTUS TO BE PUBLISHED BY THE COMPANY IN DUE COURSE IN CONNECTION WITH THE PROPOSED RIGHTS ISSUE. COPIES OF THE PROSPECTUS WILL, FOLLOWING PUBLICATION, BE AVAILABLE FROM THE COMPANY'S REGISTERED OFFICE.
ALL TERMS ARE DEFINED AT THE BACK OF THIS ANNOUNCEMENT, UNLESS OTHERWISE DEFINED HEREIN.
