DGAP-News: Activa Resources AG makes strong operational progress and announces rights issue to raise new capital
(firmenpresse) - DGAP-News: Activa Resources AG / Key word(s): Capital Increase/Issue
of Debt
Activa Resources AG makes strong operational progress and announces
rights issue to raise new capital
11.03.2011 / 08:45
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NEWS RELEASE 11th MARCH 2011
Activa Resources AG makes strong operational progress and announces rights
issue to raise new capital
- US subsidiary set to report first net profit in 2010 on revenues
exceeding USD 6.8 million
- New independent reserve report values Proven Reserves (P1) of 3.1
million BOE at USD 50 million or EUR 6.4 per share (post rights issue)
- 2P reserves of 7.35 million BOE and are valued at USD 180 million (PV10)
or EUR 23 per share (post rights issue)
- Developments across Activa's portfolio of oil and gas fields gather
momentum
- Activa is poised for significant revenue growth and value creation in
2011 and 2012
- Activa to raise up to EUR 5.5 million through equity rights issue and
convertible bond
Bad Homburg, 11th March 2011. Activa Resources AG is making strong
operational progress, evidenced by further upward revisions to its oil and
natural gas reserves, execution of its drilling programmes and an expected
first reported net profit in 2010 at Activa Resources, LLC. In order to
fund its growth strategy and to refinance its expiring corporate bond
Activa announces plans to raise new equity and the issuance of a new
convertible bond.
Reserve estimates revised up again
Activa Resources 1P (proven) reserves amount to 3.1 million BOE at 1
January 2011 (vs. 2.6 million BOE one year ago), valued at USD 50 million
(PV10) or EUR 6.4 per share (post rights issue). This increase has been
achieved despite the partial sale of OSR-Halliday and approx. USD 4 million
of production revenues during the year.
2P reserves increased by 13 % y-o-y to 7.4 million BOE with an 80:20 oil to
natural gas mix. Estimated Future Net Revenue (FNR) from 2P reserves has
increased to USD 448 million (USD 360 million) with a PV10 value of USD
180.4 million (USD 144.5 million) or EUR 23 per share (post rights issue).
The reserve estimates have been prepared by Sojen Consulting, LLC,
independent third party engineers based in Austin, Texas. The increase in
Activa's reserve base is primarily attributable to the progress in the
OSR-Halliday field, an established oil field covering over 16,000 acres in
east Texas with a production history going back to 1961.
Field reports show broad progress
OSR-Halliday - The full development of the OSR-Halliday oil field is set to
continue following Activa's successful first horizontal well in the autumn
of 2010. The next horizontal (H-32) will spud in the coming weeks and is
expected to be put on production by June. Up to 4 additional wells are
planned in 2011.
Several oil companies have now established large acreage positions in the
immediate vacinity of the OSR-Halliday field. Over 60,000 acres have been
leased around the OSR-Halliday field by Chesapeake and others. New drilling
activity - targeting primarily the Woodbine Formation but also the Lower
Woodbine and Eagle Ford shale - is underway. Four new horizontal Woodbine
wells are now being drilled within short distances of Activas core acreage
with a further 7 wells already permitted. The first of these wells has
already been fractured and is testing at 550 BOED. In addition, 2 new Eagle
Ford well production tests are in process in the area with encouraging
initial results. If the offset well results are encouraging Activa expects
a significant increase in its proven reserves.
Loma Field - a 6 fold increase in natural gas production and net cash flow
is expected from a recompletion to the main formation this month with a
potential USD 2 million lift in annual net revenue to Activa.
Gray Waterflood - the pilot project results to date are encouraging. The
initial well re-entry confirmed suitability for waterflooding. The
injection well is scheduled to be drilled in March with water injection to
commence in April. Activa is looking to confirm potential to produce 1.5
million barrels.
Adams Ranch - Activa has drilled and completed the first 5 wells of the
pilot waterflood program and expects these wells to be on production
mid-March. 5 additional wells will be drilled and completed in April to
complete the pilot program wells. Water injection is expected to commence
in May. The Adams Waterflood has the potential for 3 million BO reserves
with substantial upside.
Activa Resources, LLC profitable in 2010
Activa Resources, LLC, the company's 100% oil and gas E&P subsidiary based
in San Antonio, Texas is expected to report 2010 EBITDA of USD 3.3 million
and its first net profit since the company began its drilling activities in
2005 (audit currently in final stages). Total revenues rose 53 % from USD
4.48 million to USD 6.8 million. This includes a net gain of USD 2.7
million resulting from the previously announced sale of a 10% interest in
the OSR-Halliday field. Revenue from the production of oil and gas fell
marginally by 7 % to USD 4.14 million. Adjusted for the sale of the 10%
OSR-Halliday interest (proportional reduction in revenues related to the
interest from mid-year) 2010 revenues would have increased, attributable
primarily to the new OSR-Halliday well. Group consolidated results will be
released in June.
Equity and Convertible Bonds rights issue
Activa is moving swiftly ahead with its drilling operations, which - with
the exception of Loma Field - are targeting oil reserves. Drilling
successes in 2011 are expected to potentially double Activa's production
and revenues in 2011. Activa Resources is therefore poised for significant
value creation during 2011 and 2012. A broad and high-potential drilling
programme has already been commenced.
The Management and Supervisory Boards of Activa Resources AG have therefore
passed resolutions to execute two corporate measures which together aim to
raise up to approx. EUR 5.5 million. These funds are required to
development Activa's main oil and natural gas assets and to enable the
company to refinance its 2006/2011 corporate bond.
1) 1 for 2 equity rights offering to shareholders at EUR 1.60 per share to
raise up to approx. EUR 3 million
Activa's nominal capital amounting currently to EUR 3,729,446 will be
increased by up to EUR 1,864,723 to up to EUR 5,594,169 by issuing up to
1,864,723 new ordinary shares. The new shares are to be offered to
shareholders on a 1 for 2 basis at EUR 1.60 per share. Shareholders are
permitted to order new shares in excess of their entitlement based on their
rights.
2) Offer of an 8% convertible bond to shareholders with a conversion price
of EUR 2 per share to raise up to approx. EUR 2.5 million
Activa will offer its shareholders an 8% convertible bond, comprising
1,243,148 units with a face value of EUR 2. Each unit entitles conversion
into one new share at a conversion price of EUR 2 per share until maturity
at December 4th, 2014. Shareholders are permitted to order new convertible
bonds in excess of their entitlement based on their rights.
The new shares and the new convertible bonds will be offered to
shareholders via a rights offering during the period
14th March 2011 to 28th March 2011
on the terms described above. Shareholders are permitted to exercise rights
for both new shares and new convertible bonds. The capital increase will
only be executed if the total amount raised byboth offers reaches at least
EUR 2 million.
New shares and convertible bonds not taken up via exercising of rights by
shareholders will be issued to new investors via a private placement. New
investors have already made substantial written commitments to purchase
these shares and units of the convertible bond.
The Management Board will execute it rights to purchase new shares in order
to maintain its percentage holding in the company.
The Management Board
Queries: Leigh A. Hooper, CEO, Tel. +49 6172 483 2352
About Activa Resources AG
Activa Resources AG is an independent oil and gas company which focuses on
the acquisition, development and exploitation of oil and natural gas
properties. Activa Resources AG is listed on the Frankfurt stock exchange
and is based in Bad Homburg, Germany. The company's management and
technical team comprise oil industry experts with many years operational
experience at major international oil companies. Further information can be
found at www.activaresources.com.
Forward-looking statements
This news release includes forward-looking statements. Forward-looking
statements include, but are not limited to, statements concerning estimates
of expected drilling and development wells and associated costs, statements
relating to estimates of, and increases in, production, cash flows and
values and other statements which are not historical facts. When used in
this document, the words such as 'could,' 'plan,' 'estimate', 'expect',
'intend', 'may', 'potential', 'should' and similar expressions are
forward-looking statements. Although Activa believes that its expectations
reflected in these forward-looking statements are reasonable, such
statements involve risks and uncertainties and no assurance can be given
that actual results will be consistent with these forward-looking
statements. Important factors that could cause actual results to differ
from these forward-looking statements include the potential that the
Company's projects will experience technological and mechanical problems,
that geological conditions in the reservoir may not result in commercial
levels of oil and gas production, that changes in product prices can have a
material impact and that Activa fails to raise sufficient capital to
adequately fund its activities.
End of Corporate News
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115228 11.03.2011
Datum: 11.03.2011 - 08:45 Uhr
Sprache: Deutsch
News-ID 33449
Anzahl Zeichen: 0
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Kategorie:
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