Malka Oil has raised SEK 250 million in a new share issue directed
towards Swedish and International investors. Among the new
shareholders are the Swedish 2nd AP Fund, Norwegian State Pension
Fund and The Norwegian Petroleum Fund. In total 50 million shares
were issued at a price per share of SEK 5, representing a discount of
6.5 % compared to the volume weighted average price the last five
trading days.
The share issue will finance the ongoing drilling programme for 2008
and the completion of the company's own Transneft connection.
The western reserve study is delayed and the result is expected in
the latter part of July.
The Board of Directors opinion is that it is important to guarantee a
continued expansion for Malka Oil and to create the action scope in
order to take care of the company's positive possibilities. In light
of this, the new share issue has been executed without preferential
rights for existing shareholders in accordance with the authorization
given by the general meeting on June 11, 2008.
The new issue will increase the number of shares by 50,000,000 from
281,112,840 to 331,112,840, of which the new issued shares represent
15.1%.
The motives for issuing shares without preferential rights for
shareholders are to broaden and strengthen the institutional
ownership in Malka Oil, promote trading liquidity and to promptly
secure financing for the continued expansion of the company's
operations in the Tomsk region, including the Exploration &
Production programme for 2008 and the direct connection to Transneft.
SEB Enskilda AS has acted as Sole Lead Manager to Malka Oil in
connection with the new share issue.
The shares offered and subscribed in the private placement will be
settled immediately by way of transfer to the subscribers upon
payment of already listed shares made available for SEB Enskilda AS
by existing shareholders, including the primary insider Mats
Gabrielsson and/or companies controlled by him, (the Lenders) based
on a standardized Stock Lending Agreement between SEB Enskilda AS and
the Lenders, under which the Lenders receive no compensation.
Accordingly, all shares offered in the private placement are tradable
immediately after delivery to the investors. The shares borrowed from
the Lenders will be returned to the Lenders by and upon the issue of
new shares have been registered.
The western reserve study of the company's oil reserves is delayed
and the result is now expected in the latter part of July instead as
earlier communicated during the month of June.
For further information, please contact:
Fredrik Svinhufvud, Managing Director Malka Oil, tel +46 8 5000 7811,
mobile +46 708 708 708
Richard Tejme, CFO, tel +46 8 5000 7812 mobile +46 707 31 52 17
For further information on Malka Oil AB, see the website
www.malkaoil.se
Malka Oil AB (publ) is an independent oil and gas production company
operating in the Tomsk region in western Siberia. Their current
position consists of oil and gas assets for license block number 87
in the said region. The block has a surface of 1,800 square
kilometres. There are currently three oil fields at the license
block, namely Zapadno-Luginetskoye ("ZL"), Lower Luginetskoye ("LL")
and the Schinginskoye oil field, and a large quantity of other not
yet drilled oil structures. The ZL and LL oil fields are in
production and these two oil fields field have also went through
reserve classification by the Russian State Committee of Reserves
(GKZ). A considerable drilling programme was carried out in 2007. The
GKZ registered extractable oil and condensate reserves in the
categories C1 and C2 amounted to 97 million barrels at the end of
2007. The company's own estimate of its extractable oil and
condensate reserves in the three existing oil fields on license block
number 87 is currently 140-190 million barrels.
Malka Oil's license block is surrounded by a large number of
producing oil and gas fields.
Reasonable caution notice: The statement and assumptions made in the
company's information regarding Malka Oil AB's ("Malka") current
plans, prognoses, strategies, concepts and other statements that are
not historical facts are estimations or "forward looking statements"
concerning Malka's future activities. Such future estimations
comprise but are not limited to statements that include words such as"may occur", "concerning", "plans", "expects", "estimates","believes", "evaluates", "prognosticates" or similar expressions.
Such expressions reflect the management of Malka's expectations and
assumptions made on the basis of information available at that time.
These statements and assumptions are subject to a large number of
risks and uncertainties. These, in their turn, comprise but are not
limited to i) changes in the financial, legal and political
environment of the countries in which Malka conducts business, ii)
changes in the available geological information concerning the
company's projects in operation, iii) Malka's capacity to
continuously guarantee sufficient financing to perform their
activities as a "going concern", iv) the success of all participants
in the group, or of the various interested companies, joint ventures
or secondary alliances, v) changes in currency exchange rates, in
particular those relating to the RUR/USD rate. Due to the background
of the many risks and uncertainties that exist for any
oil-prospecting venture and oil production company in its initial
stage, Malka's actual future development may significantly deviate
from that indicated in the company's informative statements. Malka
assumes no implicit liability to immediately update any such future
evaluations.
