Starvest PLC Investee Company Kuwait Energy Intention to List
June 07 2017 - 5:09AM
RNS Non-Regulatory
TIDMSVE
Starvest PLC
07 June 2017
7 June 2017
Starvest Plc ("Starvest" or "the Company")
Investee Company Kuwait Energy Announces Intention to List on
LSE
Starvest PLC (LON:SVE), the London Stock Exchange AIM listed
specialist mining and resources investment business, is pleased to
provide an update on its investee company Kuwait Energy PLC which
earlier this month announced its intention to seek a listing on the
London Stock Exchange (LSE).
Highlights
-- Investee company Kuwait Energy PLC ("Kuwait Energy")
announces intention to list on LSE seeking a valuation of US$1
billion
-- Kuwait Energy generating significant revenues from oil and
gas production in the Middle East and North Africa regions;
-- Outstanding growth in oil and gas reserves with significant upside for additional resources
Callum Baxter, Chairman and CEO commented: "We have followed the
development of Kuwait Energy for several years and it is very
pleasing to see the significant oil and gas discoveries and the
company pushing into production to the point where they are now
generating substantial annual revenue. Plus there is greater
potential with the development of additional reserves from large
assets. Starvest notes the intention of Kuwait Energy to seek a
premium listing on the London Stock Exchange and we are closely
following the progress of the IPO."
Kuwait Energy PLC
Kuwait Energy was established in 2005 and has built a portfolio
of oil and gas focussed assets in the Middle East and North Africa
regions. Starvest originally held a major founding stake in Concord
Oil and Gas PLC which was subsequently acquired by Kuwait Energy.
Starvest has retained its shareholding in Kuwait Energy since that
time.
Kuwait Energy has spent recent years developing its asset base
and, pleasingly, has made significant discoveries with several
assets being successfully brought into production. It has 10 assets
across four countries in a majority operated asset portfolio. As at
31 December 2016 its reserves were in excess of 800 million barrels
oil (equivalent) and 2016 production averaged approximately 24,000
barrels of oil (equivalent) per day. For the year to 31 December
2016 Kuwait energy had revenues from operations of over US$125
million and over US$155 million for the year to 31 Dec 2015.
The company is operating in proven prolific hydrocarbon
producing basins and has good local relationships and track record
of operations. It works under a UK corporate governance code with
established Corporate Social Responsibility and Occupations Health
and Safety programmes. Kuwait energy has a stable management team
with a long history of operating and investing in its targeted
regions.
Since 2010 Kuwait Energy's oil and gas reserves have seen
outstanding growth from 20 million to over 800 million barrels
(equivalent) through acquisition and exploration success. There are
significant growth opportunities in the two assets of Block 9 and
Siba, both in Iraq, which could potentially total over 1 billion
barrels (equivalent) in reserves with two wells already in
production.
Kuwait Energy has sought a listing on a recognised exchange for
several years. An earlier attempt was abandoned in late 2014
following a significant decline in the oil price. However, in early
May 2017 Kuwait Energy announced its intention to list on the LSE
and is targeting a valuation of approximately US$1 billion (GBP750
million). It is reported that the company will apply for admission
in June. Following IPO, Starvest expects to see multiple times its
initial investment in Kuwait Energy if the listing occurs at the
suggested valuation of US$1 billion. Starvest has been a long term
holder of its shares in Kuwait Energy and continues to monitor the
admission progress.
To diversify its sector exposure Starvest is also looking to
take a direct stake in projects and is currently evaluating
opportunities in several commodities such as gold, copper and
cobalt. We will update the market as acquisitions are
completed.
Starvest is a specialist mining and resource investment company
and has the industry knowledge and market exposure to select
compelling opportunities early in the investment cycle.
Callum N Baxter
Chairman & Chief Executive
7 June 2017
Enquiries to:
Starvest PLC
Callum Baxter Chairman/CEO 07922 255 933
cbaxter@starvest.co.uk
John Watkins Finance Director 07768 512 404
jwatkins@starvest.co.uk
Grant Thornton UK LLP (Nomad)
Colin Aaronson or Harrison Clarke 02073 835 100
SI Capital Ltd (Appointed Broker)
Nick Emerson or Andy Thacker 01483 413 500
This information is provided by RNS
The company news service from the London Stock Exchange
END
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