[For Immediate Release]
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Brightoil Petroleum Issues 590 Million Shares to Raise HK$1,298 Million
For Top-up Placement
*****
Receives Enthusiastic Response From Multiple Institutions
(8 May 2015 - Hong Kong) Brightoil Petroleum (Holdings) Limited ("Brightoil Petroleum" or the "Group"; stock code: 933.HK) is pleased to announce that today the Group has completed a top-up placement exercise to place 590,017,000 shares (the "Placing") to no less than six independent investors. Net proceeds raised from the Placing and Subscription Agreement amounted to approximately HK$1,292 million. This transaction will raise additional funds for the Group's general corporate purposes, working capital for existing projects and debt repayment. Nomura International (Hong Kong) Limited is the sole global coordinator and sole book-runner of the transaction. Nomura International (Hong Kong) Limited and BOCI Asia Limited are the joint placing agents in respect of the Placing.
The placing price of this share transaction was set at HK$2.2 per share, representing a discount of approximately 12.35% to the closing price on the date of the Placing and Subscription Agreement, and a discount of approximately 11.65% to the average closing price for the last five consecutive trading days up to and including the date of the agreement. Upon the completion of the transaction, the shareholding of Dr. SIT Kwong Lam, the Controlling Shareholder of the Group, will change from 74.84% to 70.12%. The independent investors who will be placed the Placing Shares will hold a total 6.31% equity interest of the enlarged share capital of the Group.
Dr. SIT Kwong Lam, Chairman of Brightoil Petroleum, said, "We are very pleased with the enthusiasm as well as the quality of these investors for the share placement. Brightoil Petroleum is devoted to establishing itself as a world-renowned resources-focused energy enterprise. The placement not only enables the Group to broaden its shareholder base by bringing in high-quality investors, but also provides us with additional resources to further expand our business."
"Despite the wide fluctuation in crude oil prices since the second half of 2014, the Group still achieved better-than-expected results in the first half of FY2015. Our strong performance demonstrates that our unique business model has served us well and that our efforts to expand upstream operations as well as own ability to control operational expenditures have started to generate positive returns. Going forward, we will take advantage of the low oil price environment to explore acquisition opportunities, which would boost our oil and gas reserves as well as production. Moreover, the oil price troughs have created robust demand for oil storage facilities and marine transportation services. The Phase I & II storage and terminal facilities of Zhoushan Waidiao Island Project, with a total storage capacity of 3.16million cubic meters, will successively enter operation. They will become a new driver for our sustainable development and enable us to generate additional returns to our shareholders," added Dr. SIT Kwong Lam.
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About Brightoil Petroleum
Brightoil Petroleum (Holdings) Limited is a resource-based energy enterprise focusing on upstream oil and gas resources exploration, along with further developments midstream and downstream. The Group is principally engaged in the exploration, development and production of Upstream Oil and Gas Fields, Marine Transportation, Oil Storage and Terminal Facilities and International Trading and Bunkering Business.
The Group has three oil and gas field projects in its portfolio, including Dina 1 Gas Field, Tuzi Gas Field and Caofeidian Oil Field in Bohai Bay. The Company's interest in 2P reserves is expected to reach approximately 93.9 million barrels of oil equivalent. When all these three areas are in full operation, Dina 1, Tuzi and Bohai will reach a daily net production of approximately 25,000 barrels of oil equivalent, and an annual net production of approximately 9 million barrels of oil equivalent.
The Group currently operates four Aframax Oil Tankers and five VLCCs, and has a total capacity exceeding 2 million metric tonnes.
The Group's oil storage facility on Waidiao Island in Zhoushan, with a total capacity of 3.16 million cubic meters, is under construction. The terminal facility will be equipped with 13 berths which can accommodate vessels from 1,000 to 300,000 deadweight tonnage. Meanwhile, the Group's oil storage facility on Changxing Island in Dalian, with a total capacity of 7.19 million cubic meters, is also under construction. The terminal facility will be equipped with 13 berths to accommodate vessels from 1,000 to 300,000 deadweight tonnage.
The Group is one of the largest marine bunkering service providers in China with services expanded to global ports. The Group's tradable range of products is diversified into fuel oil, crude oil, gas oil, as well as petrochemical and the related petroleum products.
The Group will continue to develop its Upstream business by stretching its tentacles into the exploration, development and production of oil fields with a view to becoming one of the leading resources-based energy conglomerates in the world.
Brightoil Petroleum has been included in the Hang Seng MidCap Index, effective from 9 March 2015. |
For additional information about Brightoil Petroleum, please visit the Company's website at www.brightoil.com.hk.
Press Release distributed by: Brightoil Petroleum (Holdings) Limited
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