In a Bondholders meeting held today the convertible bondholders voted
for the proposal of early conversion of the entire outstanding
convertible bond debt. This means that Malka's convertible bond debt
of total MUSD 80 (approximately MSEK 710) will be converted to
1,678,000,000 shares in the company. The transaction is conditional
upon an approval from an extra general meeting and that the coming
rights issue of approximately MSEK 140 (MUSD 16) is fully subscribed
for. The settlement will decrease the interest costs for the company
with MUSD 6.6 (approximately MSEK 59) per year. After the rights
issue and conversion of the convertible bonds, the previous
convertible bondholders will own approximately 42% of the shares in
Malka Oil."It is encouraging that we have reached this agreement with the
convertible bondholders. We are convinced that this is a constructive
solution for both parties, the shareholders as well as the
convertible bondholders" says Fredrik Svinhufvud and continues;"Given a successfully completed rights issue and conversion of the
convertible debt the company will have a considerably stronger
balance sheet and a reduced interest burden of some 60 MSEK per
year."
For further information, please contact:
Mats Gabrielsson, Chairman of the Board, mobile +46 707 75 83 20
Fredrik Svinhufvud, Managing Director, 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. Its current
position consists of oil and gas assets for licence 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 licence
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
have during 2007 went through reserve classification by the Russian
State Committee of Reserves (GKZ) and during spring 2008 a Western
reserve study made by DeGolyer and MacNaughton. 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, C1+ C2, in
the three existing oil fields on licence block number 87 is currently
140-190 million barrels. The Western reserve study estimation as of
April 30, 2008 amounted to 43.5 million barrels 2P and 90.6 million
barrels 3P oil reserves.
Malka Oil's licence 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.
