Pandion acquires 30 percent of PL 842 from Aker BP
Pandion Energy AS (Pandion Energy) has entered into an agreement with Aker BP ASA (Aker BP) to acquire a 30 percent interest in PL 842 in the Norwegian Sea. The license is located in blocks 6608/10, 11 and 12, east-northeast of the Norne field.
PL 842 was awarded in the 2015 APA round and is operated by Capricorn Norge AS (40%) with Skagen44 AS (30%) and Aker BP (30% before sale) as partners. An exploration well is planned to be drilled in the license in 2019.
CEO of Pandion Energy, Jan Christian Ellefsen, commented:
“With the acquisition of a 30 percent interest in PL842, we make our first farm-in into the Norwegian Sea. The license is located in a prolific part of the Norwegian continental shelf with multiple fields and discoveries and fits well with our strategy to invest in high quality exploration opportunities where we see an attractive risk-reward relationship.”
The transaction is subject to customary conditions for completion, including approval by the Norwegian Ministry of Petroleum and Energy.
Effective date for the transaction is 1 January 2019.
Pandion acquires 30 percent of PL 842 from Aker BP
Zennor Announces OGA Approval for the Finlaggan Field Development & Signing of a £170mm Senior Secured Term Loan Facility
Zennor Petroleum Limited (“Zennor”) is pleased to announce that it has received approval from the Oil & Gas Authority (OGA) to proceed with the Finlaggan Field development in the UK Central North Sea (block 21/05c), of which it owns 100%.
The development project to recover 26mmboe of 2P gas condensate reserves will include two subsea production wells tied back 20km to the ConocoPhillips operated Britannia platform. First production from Finlaggan is expected in Q4 2020.
Operational update
The Finlaggan development wells are currently being drilled by Transocean’s Paul B Loyd Junior drilling rig. The first of the two development wells, F1, has been successfully drilled through the reservoir section and is cased, cemented and ready for completion and clean-up later in the drilling programme.
The subsea construction contract has been awarded to TechnipFMC, with the main installation works planned for 2019. This includes the laying of a 10” pipe-in-pipe production flowline and electrohydraulic control umbilical back to Britannia.
Financing update
Zennor is also pleased to announce the signing of a £170mm Senior Secured Term Loan Facility to fund the Finlaggan development into production.
The facility was structured, underwritten and syndicated by Societe Generale, London Branch to BNP Paribas, DNB (UK) Limited and Nedbank Limited (together with Societe Generale, the Mandated Lead Arrangers) and Investec Bank plc and Barclays Bank plc (as Lead Arrangers).
Zennor was advised on this transaction by N.M. Rothschild and Pinsent Masons LLP, whilst Bracewell (UK) LLP advised the banks.
Martin Rowe, Zennor’s Managing Director, said:
“This year has been transformational for Zennor. We recently announced the strategic acquisition of an 8.97% working interest in the Britannia Field, subject to partner and regulatory approval, which has doubled our production to circa 5,000boepd. Today, we are fully financed to take Finlaggan through to first production in 2020.
We greatly appreciate the support we have received from the OGA, our banking syndicate and our key contractors and partners in enabling us to push forward with the execution of the Finlaggan project; a key foundation stone of our growing portfolio.”
Scott Robertson, Area Manager, Central North Sea, at the OGA said:
“The Oil and Gas Authority is pleased to approve the Finlaggan field development. The gas field, which was discovered 13 years ago, will tie-back to the Britannia facilities, utilising existing infrastructure, maximising economic recovery from the region.”
2018-10-22 Finlaggan FDP Press Statement
The EU rewards Ideol with €2.5 million to finance the industrialization and commercial development of its technology
Ideol has just received a €2.5 million grant from the European Commission under the Horizon 2020 – SME Instrument programme. This funding is outstanding since this very selective programme only rewards 5% of the candidate projects.
Last 20 September, the SME Instrument programme awarded Ideol a €2.5 million grant for the Leadfloat project. This project has three main objectives: the mass production of Ideol’s floating foundation with a view to prepare commercial-scale wind farms of 500+ MW; the valorization of the results obtained by operating the Floatgen wind turbine installed off the French coast (studies, equipment) to optimize operation and maintenance costs ; finally, the strengthening of commercial development in the most strategic markets, including the opening of a subsidiary in Japan.
This project follows the very recent commissioning of the Floatgen wind turbine, the first operational unit of the technology patented by Ideol and France’s first offshore wind turbine and allows the 50 employees’ company to further accelerate its development at a time when the various global tenders for large-scale floating commercial farms are under preparation.
Paul de la Guérivière, Ideol’s CEO, is delighted with this announcement: “This grant demonstrates that our company is recognized as one of the jewels of the French and European cleantech industry. This financing is particularly difficult to obtain, since only 60 – including Ideol – of the 1200 candidate companies have been selected. A few months after raising €15 million from leading private investors, this announcement shows that our potential is clear for both public authorities and the private sector”.
Ideol announcement
NOK 400 million senior unsecured bond listed on Nordic ABM
Pandion Energy is pleased to announce that the Company’s NOK 400 million senior unsecured bond “Pandion Energy AS Senior Unsecured Callable Bond Issue 2018/2023” with ISIN NO 0010820103 has been listed on the Nordic ABM.
DNB Markets and Pareto Securities acted as Joint Lead Managers for the bond issue.
NOK 400 million senior unsecured bond listed on Nordic ABM
Ideol’s first demonstrator is delivering power to the grid
The connection of the electricity export cable and a final series of tests carried out in recent days enabled the Floatgen wind turbine, which is installed 22 km off Le Croisic (Loire-Atlantique), to become fully operational on Tuesday 18 September.
This announcement is a highly symbolic step for Ideol, because this wind turbine is the first operational unit of the floating foundation concept patented by the company. A second unit of the Ideol foundation will soon be operational off Japan.
Ideol announcement
Zennor Acquisition of Britannia Field Interest
Zennor Petroleum Limited (“Zennor” or “the Company”) is pleased to announce that its wholly owned subsidiary, Zennor North Sea Limited, has entered into a Sale and Purchase Agreement with Mitsui E&P UK Limited (“MEPUK”) in respect of its interests in United Kingdom Continental Shelf Licences P.213, Block 16/26a, Area B and P.345 Block 16/27b Area B which represent an 8.97% working interest in the Britannia Field. Completion of the transaction is subject to customary regulatory and partner consents.
The acquisition of the Britannia Field interest is strategic for Zennor given its 100% operated working interest in the nearby Finlaggan Field. Finlaggan is scheduled to be developed as a sub-sea tieback to the Britannia platform. As notified in the Operations Update dated July 10th, 2018, Zennor is currently drilling two wells as part of the Finlaggan Field development. Further updates on Finlaggan are anticipated to be announced in the coming weeks.
The acquisition also fits with the recently announced 30th Offshore Licencing Round awards where Zennor was successful with several 100% operated awards in and around the Finlaggan and Britannia Fields. These awards include the Leverett Discovery in Block 21/03d, which may form a future potential tieback to the Finlaggan sub-sea infrastructure.
The effective date for the transaction, which doubles Zennor’s net production to circa 5,000 boepd is January 1st, 2018. As part of the transaction agreement, MEPUK will retain the majority of the decommissioning liability up to an agreed cap with Zennor being responsible for the balance.
Martin Rowe, Zennor’s Managing Director, said:
“We are delighted with this acquisition which is directly aligned to our Finlaggan project and wider corporate strategy.
Creating core infrastructure hubs to deliver cost effective production is central to our approach. The ability to leverage the Britannia infrastructure will provide Finlaggan and the wider portfolio acquired in the 30th Round with a cost effective, fast-track route to production.
Zennor Acquisition of Britannia Field Interest
Kerogen Capital invests in Ideol SA
Kerogen Capital (“Kerogen”) is pleased to announce it has entered into binding agreements to invest in Ideol SA (“Ideol”), a global leader in the floating offshore wind industry. Kerogen will be the lead investor in Ideol’s €15 million equity funding round and will become Ideol’s largest shareholder.
Founded in 2010 and based in France, Ideol has developed an industry-leading and internationally recognised offshore floating foundation which promises to become one of the key commercial solutions in the rapidly developing floating offshore wind industry. Ideol is currently deploying its floating wind demonstrator in France and is expected to deploy another demonstrator in Japan later this year. Ideol’s patented floating foundation technology is designed to operate with the latest large-scale wind turbines and is expected to be the most cost-competitive solution in the floating offshore wind market.
The fundraising will further advance Ideol’s growth and expansion into key international markets. Kerogen will be joining the board and will partner with Ideol to help internationalise its business.
Existing shareholders in Ideol, including Amundi Private Equity, Sofimac Regions and PACA Investment have also agreed to subscribe in this capital raise alongside Kerogen, underlying the continued support of Ideol’s existing shareholders and their strong conviction in the company’s future growth potential.
Kerogen’s investment is subject to customary closing conditions and is expected to complete by June 2018.
Paul de la Guerivière, CEO of Ideol, commented:
“Floating offshore wind is a burgeoning, yet fast accelerating market, with several pre-commercial and commercial-scale projects announced or under development in France, Scotland, California, Japan and Taiwan. The backing of a large energy specialist like Kerogen demonstrates that Ideol is well positioned to harvest this market acceleration.”
Philip Jackson, Executive Board Member of Kerogen, commented:
“We have been following the floating offshore wind industry for some time. Its supply chain has multiple cross-overs with where we already invest. We are firmly convinced that offshore floating wind will soon become a mainstream supplier of energy and that Ideol’s superior team and technology have a central role to play in making this happen.”
For further information contact: investorcommunications@kerogencap.com
Ideol Investment Press Release
Pandion Energy completes debt financing
With the successful completion of its first major debt financing, Pandion Energy has established a solid financial platform for continued investments in the company’s high-quality asset portfolio and future growth. Pre-qualified as a licensee on the Norwegian continental shelf in June 2017, the company currently holds a 10 percent interest in the Valhall & Hod fields, a 20 percent interest in the Cara development project, and interests in six exploration licenses.
The debt financing package includes a reserve based lending (“RBL”) facility of USD 150 million with an accordion of USD 150 million, and a senior unsecured bond of NOK 400 million. Together with the NOK 400 million exploration financing facility completed in November 2017, Pandion Energy’s investment program is now fully financed with ample room for additional growth opportunities.
Commenting on the financing process, Jan Christian Ellefsen, CEO of Pandion Energy said:
“We are very pleased to have completed the debt financing as planned, and to have received such strong interest and support from both leading Nordic and international banks, as well as institutional bond investors. The new capital structure provides us with substantial funding for the ongoing investments in our high-quality asset portfolio, and flexibility to support the future growth of Pandion Energy.”
On 9 April 2018, the USD 150 million RBL facility was signed with BNP Paribas, DNB, ING and SEB. The facility has a 7-year final maturity (April 2025) and will be initially utilized to refinance existing shareholder loans and future capex commitments on the Valhall and Hod fields, as well as the Cara development project. The RBL facility has an uncommitted accordion of USD 150 million to provide room for financing of additional acquisitions and new development opportunities.
On 4 April 2018, Pandion completed its debut issue of a NOK 400 million senior unsecured bond with maturity in April 2023. The bond issue was well received by Nordic institutional investors and was significantly oversubscribed. The bond will be listed on the Nordic ABM, a marketplace regulated by Oslo Børs, within 6 months. Nordic Trustee has been appointed as bond trustee.
DNB Markets and Pareto Securities acted as joint lead managers and bookrunners with SEB as co-manager of the bond issue.
Arntzen de Besche acted as legal advisor to Pandion Energy. RBL banks were advised by Michelet & Co and managers of the bond issue were advised by Wikborg Rein.
Pandion Energy press release
Energean Takes FID on Karish & Tanin Gas Project
Following the Company’s successful IPO on the London Stock Exchange, Energean takes FID to proceed with its $1.6 billion Karish & Tanin development offshore Israel.
Energean Oil & Gas PLC (“Energean” or “the Company”; ENOG:LN) is pleased to announce that its Board of Directors has approved the Final Investment Decision (“FID”) to proceed with the $1.6 billion Karish & Tanin Development Project, offshore Israel.
$405 million of the $460 million raised from the recent IPO of Energean will be used to fund the Company’s 70% share in the project, while the remaining 30% will be funded by Kerogen Capital, Energean’s partner in the project.
The project is also being financed through a Senior Credit Facility of US$1.275 billion recently announced and underwritten by Morgan Stanley, Natixis, Bank Hapoalim and Société Générale.
Energean has secured long-term gas agreements with some of the largest private power producers and industrial companies in Israel. The Company has contracted for the purchase of a total of 61 BCM of gas over a period of 16 years, at an annual rate of approximately 4.2 BCM per year (on an ACQ basis).
Energean will develop the project through a new build, owned FPSO with gas treatment capacity of 800 MMscf/day (8 BCM/per annum) and liquids storage capacity of 800,000 bbls, which the Company believes provides a flexible infrastructure solution and, potentially the scope to expand output for potential additional projects. A 90km gas pipeline will link the FPSO to the Israeli coast and necessary onshore facilities to allow connection to the domestic sales gas grid operated by INGL, the national gas transmission company.
The entire project infrastructure has been contracted to be engineered, built and commissioned under a lump sum EPCIC Contract with Technip FMC, with a contracted delivery date of Q1 2021.
During 2019, three wells will be drilled into the Karish discovery, using the Stena Forth Drill Ship which is under contract from Energean. The Company has also secured options to drill five further wells in the licences Energean holds in Israel.
Energean Oil & Gas CEO, Mathios Rigas, commented: “We committed to the investors in the IPO that we would take FID immediately after the equity raise and I am pleased to be honouring this, the day after the shares started trading on the London Stock Exchange.
“Today, we commence the development of the project having, in a very short period of time, secured the necessary gas contracts, a turn-key EPCIC contract with Technip FMC, a drilling contract with Stena and project finance backed by four international banks. All this has been achieved in just 14 months since January 2017, when the Israeli Government approved the transfer of the licences to Energean.
“The Karish & Tanin development will bring competition and security of supply to the Israeli gas market, and will support Energean’s strategy to become a major player in the gas developments of the East Mediterranean.
“Owning and operating the only FPSO in the East Mediterranean with an 8 BCM per annum capacity gives Energean significant scope for growth through being able to support potential additional gas discoveries from Karish & Tanin and the five adjacent licences that we own in Israel.”
Press Release
Energean Israel Signs US$1.275bn Facility Agreement with Four International Banks to Finance the Karish Development Project
The Senior Credit Facility, led by Morgan Stanley, Natixis, Bank Hapoalim and Societe Generale is a key milestone in financing the development of Karish, part of the Company’s flagship Karish and Tanin project.
Please refer to the official company announcement for further details: https://www.energean.com/media/press-releases/