TIDMENQ
RNS Number : 7640V
EnQuest PLC
08 November 2010
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Not for release, publication or distribution, in whole or in part, in or into or
from Australia, Japan or any other jurisdiction where to do so would constitute
a violation of the relevant laws of such jurisdiction
ENQUEST COMPLETES ACQUISITION OF
STRATIC ENERGY CORPORATION
Independent oil and gas production & development company, EnQuest PLC
("EnQuest") announced on 3 August 2010 that it had entered into an Arrangement
Agreement (the "Arrangement Agreement") to acquire the entire issued share
capital of Stratic Energy Corporation ("Stratic") (the "Acquisition"). EnQuest
now reports that it has completed this acquisition.
HIGHLIGHTS OF THE ACQUISITION
* EnQuest has acquired Stratic in a transaction recommended by Stratic's Board
* the acquisition increases EnQuest's North Sea 2P reserves by 7.27MMboe
* at the time of the announcement in August, the purchase price equated,
adjusted for tax, to paying US$11.2 per barrel of 2P reserves
* the acquisition consolidates EnQuest's 27.7% position in West Don with an
additional 17.25% working interest
* it provides EnQuest with a substantial 19% interest in the Crawford field
development
EnQuest has completed the acquisition of 272,635,224 common shares of Stratic,
being all of the outstanding shares of Stratic, through a plan of arrangement
(the "Plan of Arrangement") effective 5 November 2010 under the Business
Corporations Act (Yukon). As announced on 3 August 2010, Stratic shareholders
receive 0.089626 EnQuest Ordinary shares per Stratic share. Based on EnQuest's
average closing price on the London Stock Exchange between 28 July to 2 August
2010, this equated to an offer of 17.00 Canadian cents for each existing Stratic
share, and valued the issued and to be issued share capital of Stratic at
approximately US$45.7 million.
It was also announced on 3 August 2010 that as part of the transaction EnQuest
is refinancing Stratic's US$74.7 million net debt (as at 30 June 2010).
Stratic shareholders receive a total of 24,434,983 EnQuest ordinary shares and
it is expected that at 8:00 AM Monday 8 November 2010, these will be admitted to
the Official List and to trading on the London Stock Exchange. Following
admission of these shares, EnQuest's issued share capital will consist of
799,462,905 shares with voting rights.
The transaction constitutes a change of control of Stratic for the purposes of
Stratic's outstanding convertible notes and convertible debentures, requiring
Stratic to make offers to purchase such securities in accordance with their
terms. EnQuest intends to cause Stratic to make such offers and acquire such
securities for cash consideration.
All outstanding stock options of Stratic were cancelled on closing pursuant to
stock option termination agreements entered into with holders of all outstanding
Stratic options.
As a result of the Acquisition, EnQuest has become a reporting issuer in British
Columbia, Alberta and Ontario. EnQuest is subject to the reporting requirements
of the Financial Services Authority of the United Kingdom and the ongoing
requirements of the London Stock Exchange (collectively, the "UK Requirements").
EnQuest will comply with the UK Requirements in connection with its oil and gas
activities rather than the requirements of the Canadian National Instrument
51-101 - Standards of Disclosure for Oil and Gas Activities.
Ends
For Stratic shareholders who may require assistance on processes surrounding
this acquisition, please contact Equity Transfer & Trust Company at +1 (416) 361
0152 or Capita Registrars Limited at +44 (0) 208 639 3399.
For further information please contact:
EnQuest PLC
Tel: +44 (0)20 7925 4900
Amjad Bseisu (Chief Executive Officer)
Jonathan Swinney (Chief Financial Officer)
Michael Waring (Head of Communications & Investor Relations)
Finsbury
Tel: +44 (0)20 7251 3801
Andrew Mitchell
Conor McClafferty
Notes to editors
EnQuest Background (reflects situation prior to the effects of this acquisition)
EnQuest PLC (www.enquest.com) is an independent oil and gas production and
development company focused on the UK Continental Shelf ("UKCS"). Its assets
include the Thistle, Deveron, Heather, Broom, West Don and Don Southwest fields.
Gaffney, Cline & Associates ("GCA") certified that as at 1 January 2010,
EnQuest's assets had total net proved plus probable oil and NGL reserves of
80.5MMBbl. As at 1 January 2010, GCA has also net certified oil and gas best
estimate (2C) contingent resources for individual assets. The aggregate of the
oil 2C contingent resources on an unrisked basis is 67.5MMBbl, and of the gas
contingent resources is 30.6Bcf (See Note 1 below.)
On 6 April 2010, EnQuest was formed from the demerged UK North Sea assets of
Petrofac Limited and Lundin Petroleum AB. EnQuest was admitted to trading on
both the London Stock Exchange and the NASDAQ OMX Stockholm. On listing,
EnQuest PLC went into the FTSE 250 index and OMX Nordix Index. Its assets
include the Thistle, Deveron, Heather, Broom, West Don and Don Southwest fields.
It has interests in 16 production licences covering 26 blocks or part blocks in
the UKCS, of which 15 licenses are operated by EnQuest.
EnQuest believes that the UKCS represents a significant hydrocarbon basin in a
low-risk region, which continues to benefit from an extensive installed
infrastructure base and skilled labour. EnQuest believes that its assets offer
material organic growth opportunities, driven by exploitation of current
infrastructure on the UKCS and the development of low-risk near field
opportunities, rather than exploitation of high-risk exploration opportunities.
EnQuest intends to deliver sustainable growth in shareholder value by focusing
on exploiting its existing reserves, commercialising and developing discoveries,
converting its significant contingent resources into reserves and pursuing
selective acquisitions. EnQuest is focused on increasing production from its
existing assets in its core hub areas. It believes that it has excellent
operational, execution, subsurface and integration skills and it seeks to become
the development partner of choice in the UKCS.
EnQuest believes that it has the technical skills, the operational scale and the
financial strength to achieve its objectives and to take advantage of the
production and development opportunities in the UKCS.
Note (1) GCA warns that there may be a significant risk that accumulations
containing contingent resources will not achieve commercial production and that
it is inappropriate to aggregate contingent resources.
Please note that EnQuest PLC is not in any way related to or affiliated with
EnQuest Energy Services Corp.
Stratic Background
Stratic is a Canadian incorporated oil and gas company currently focused
primarily on the UK North Sea. Its shares were previously traded on the TSX
Venture Exchange (ticker "SE") and the AIM market of the London Stock Exchange
(ticker "SE").
Stratic has a 19% interest in licence P.209 covering Block 9/28a which
contains the Crawford field (4.93MMBoe net 2P reserves) and 17.25% interest in
the West Don oil field (2.34MMBoe net 2P reserves), which EnQuest operates and
in which it already has a 27.7% working interest.
Stratic also has interests in other parts of the UK North Sea (including the
Cairngorm and Bowmore discoveries), in the Dutch sector of the North Sea
(Horizon West) and in its smaller residual interests in Slovenia and Morocco.
Over the last year Stratic has been implementing a disposal programme of its
non-core assets outside the UKCS. In April 2010, it completed the sale of its
Italian business for a cash consideration of EUR33.0 million. On May 7 2010,
Stratic announced that it had reached agreement for the sale of its Turkish
business for a cash consideration of $3.45 million.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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