EnQuest plc today proposed a firm placing, placing and open offer to help finance its planned acquisition of a 26.69% non-operated equity interest in the Golden Eagle Area Development in the UK Central North Sea.
The area comprises the producing Golden Eagle, Peregrine and Solitaire fields.
The company intends to raise gross proceeds of up to £36.1 million ($50m) through issuing up to 190,122,384 ordinary shares at 19 pence per new ordinary share.
ACQUISITION
EnQuest aims to purchase the Golden Eagle asset for an initial consideration of $325 million from Canadian company Suncor Energy UK Ltd.
The acquisition will add an immediate incremental production of 10kboepd, c.19mmboe to net 2P reserves and c.4mmboe to net 2C resources.
The company said that the capital raise was conditional upon, among other things, shareholders’ approval and the related-party participation by Double A Ltd, a company owned by EnQuest chief executive Amjad Bseisu’s extended family.
Earlier this month EnQuest has entered into a new up to $750 million senior secured revolving borrowing base facility agreement to repay a large portion of the EnQuest Group’s outstanding debt.
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