11/08/2005 Urals Energy Public Company Ltd opens the London markets
Urals Energy Public Company Limited opens the London markets
11 August 2005
Urals Energy is an independent exploration and production company with its principal assets and operations in Sakhalin Island, Timan Pechora and the Republic of Udmurtia, Russia.
The company’s five E&P subsidiaries in Russia have proved and probable reserves of 90 million barrels of oil and produced approx. 5,600 barrels of oil per day during the first six months of 2005. Urals Energy's two largest subsidiaries, Petrosakh and Arcticneft, own and operate refining assets with a total capacity of c.5,300 bopd. The company is focused on the integration of its five recently acquired subsidiaries and the exploitation of their assets. In addition, Urals Energy is seeking to continue to grow and diversify its reserve and production portfolio through exploration activities and the acquisition of additional E&P assets by taking advantage of the ongoing rationalisation in the Russian energy sector.
Urals Energy raised gross proceeds of approximately £64 million through a placing of approximately 26.7 million new shares at an issue price of 240 pence per share. The company’s ticker symbol on AIM is UEN. On Admission, Urals Energy will have a market capitalisation of approximately £200 million. The proceeds of the IPO will be used to finance the company's exploration program, repayment of debt, deferred acquisition payments, as well as working capital and general corporate purposes.
Commenting on the IPO, William Thomas, Chief Executive Officer of the company, said:
“We are delighted that our IPO has been so positively received by investors. The offering will allow us to continue with our exploration and development program in Russia and provide flexibility to our capital structure. Becoming a public company has been an important milestone for us as we move towards our goal of creating value for shareholders through exploitation of existing assets and further acquisitions. We look forward in the coming years to demonstrating shareholder value, and contributing to the long-term growth of the Russian economy and its standing within the international investment community."
Morgan Stanley acted as a sole bookrunner and manager of the offering and is the Nominated Adviser and Broker to Urals Energy.