Nordic Energy Plc

LSE : NORP


October 29, 2012 04:00 ET

First Day of Dealings

                                                                               Monday, 29 October 2012
                                                                                          GB00B893LZ79
                                           Nordic Energy Plc
                                      ("Nordic" or the "Company")
                                                   
                                         First Day of Dealings
                                                   
The Directors of Nordic Energy Plc are pleased to announce that the Company's entire issued  Ordinary
Share capital of 94,400,000 shares has been admitted to trading on to the PLUS-quoted market today.

Admission price of Ordinary Shares:                       1p
Ordinary Shares in issue:                                 94,400,000
Market capitalisation on Admission:                       GBP944,000
Sector classification:                                    Speciality and Other Finance
Corporate Adviser:                                        St Helens Capital Partners LLP
PLUS Symbol                                               NORP
ISIN Number                                               GB00B893LZ79

Introduction

Nordic Energy Plc was incorporated on 14 May 2012 and has been set up as an Investment Vehicle focused
on  opportunities in the oil and gas exploration and production sector in the North Sea  and  Northern
Europe. Nordic Energy's initial focus will be on low cost entry opportunities in the Danish, Norwegian
and  Dutch  offshore sectors. The Directors of the Company, Rudolf Kleiber and Patrick  Rocholl,  both
have  significant  experience  in  the oil and gas sector, specifically  in  the  Nordic  region.  The
Directors  believe  that significant opportunities exist in this region and that their  expertise  and
extensive  contacts  will  assist them in the identification, evaluation and  funding  of  appropriate
investment opportunities. The Directors will be assisted by Jens-Christian Olsen, a geologist with  35
years' experience in the sector and the region.

Investment Strategy

The  Directors intend that the Company's investment strategy will focus on oil and gas exploration and
production opportunities, predominantly in the North Sea and Northern Europe, with an initial focus on
the North Sea sectors of Denmark, Norway and the Netherlands.

Denmark

The  first discovery of oil and natural gas was made in the North Sea of Denmark in 1966.  Exploration
activity  has  remained  high throughout to 2011, and oil and gas companies  have  continued  to  show
interest  in exploring the area and securing future production. Two exploration wells were drilled  in
2011 in the Central Graben, both of which encountered hydrocarbons.

There  are  currently 19 producing fields of varying size in the Danish North Sea and three  operators
are  responsible for production from these fields: DONG A&P A/S, Hess Denmark ApS and Maersk  Olie  og
Gas A/S.  A total of ten companies participate in production from Danish fields, the largest being the
Dansk  Undergrunds  Consortium consisting of Shell, A.P. Moller - Maersk  and  Chevron.  In  2011  oil
production  totalled 12.8 million m3, an average of 234,000 barrels of oil per day,  from  199  active
production wells  and in 2010 gas production totalled 8.1 billion m3 from 79 active production wells.

The Danish Energy Agency has assessed that the sum of total reserves and contingent reserves of oil is
181 million m3, or 1.2 billion barrels.  Danish gas reserves are 101 billion m3.

Norway

Activity  levels on the Norwegian Continental Shelf remained high in 2011; the number  of  exploration
wells  drilled by Statoil rose from 17 in 2010 to 25 in 2011.  Two important discoveries were made  in
Statoil-operated explorations; the Alduos (now part of Johan Sverdrup) discovery in the North Sea  and
the  Skrugard discovery in the Barents Sea.  In total, 22 new hydrocarbon discoveries were made in  54
exploration wells.

There  are  currently 70 fields and field areas in production in the Norwegian Continental Shelf.   56
are  located in the North Sea, 13 in the Norwegian Sea and 1 in the Barents Sea. In 2010 average daily
production of oil was 2,134,000 barrels and natural gas total production totalled 106.3 billion m3.

Oil  resources as at 31 December 2011 were 5.7 billion barrels.  As at 31 December 2011  gas  reserves
were 2.04 trillion m3.

Netherlands

Exploration activity in the Dutch Continental Shelf remains high.  In 2011 one exploration licence was
applied  for, twelve were awarded and 14 exploration wells were drilled.  From these wells  six  found
gas and two found oil and gas, giving a technical success ratio of 57%.

6  operators  are responsible for the production of oil from within the Netherlands and on  the  Dutch
part  of the North Sea Continental Shelf: NAM, Dana, GDF Suez, Wintershall, Chevron and TAQA.  In 2011
average daily production was 59,490 barrels.

The  main  type  of  hydrocarbon produced in the Netherlands and the  Dutch  part  of  the  North  Sea
Continental  Shelf  is  gas.   9  operators are responsible  for  such  production  of  gas:  Chevron,
Wintershall,  GDF  Suez, Dana, Centrica, Total, NAM, ATP and Cirrus.  In 2010  total  production  from
Dutch gas fields was 85.2 billion m3.

Oil  resources as at 1 January 2012 add up to 310 million barrels; most of which reside in  fields  on
the  Dutch part of the North Sea Continental Shelf. Proven Reserves of gas in 2011 total 1.39 trillion
m3.


CIA - Factbook 2010/11                        Denmark                 Norway                Netherlands

Oil - Production bopd                         234,000                2,134,000                59,490
Gas-Production m3                           8.1 billion            106.3 billion           85.2 billion
Oil-Reserves-Bbl                            1.2 billion             5.7 billion             310 million
Gas-Reserves-m3                             101 billion            2.04 trillion           1.39 trillion

The Directors believe that the region targeted by the Company offers favourable growth conditions for
small  exploration  and production companies due to its political stability, favourable  taxation  and
legislation,  absence of government corruption, large and easily accessible database, easy  access  to
export infrastructure, and high remaining prospectivity. Licenses can generally be acquired easily and
quickly  from governments based on a negotiated work programme. The area is considered mature from  an
exploration  and  production point of view, but new initiatives have resulted in  significant  reserve
additions  and  large  new  prospect  types.  Shallow  water  depths  and  proximity  to  markets  and
infrastructure means that even small discoveries have a high value and can be quickly developed  using
standardised off-the-shelf platform designs that require relatively small investment.

The Directors  believe  that  their  experience across a wide range  of  industries  in  the  region,
particularly  in  the  oil  and  gas  sector,  will enable them  to  identify  appropriate  investment
opportunities for the Company.

The opportunities  which  the  Company invests in or acquires will, it  is  envisaged,  meet  certain
conditions which, the Directors believe, will best position the Company to maximise Shareholder value.
In  particular,  the investment opportunities which the Directors intend to focus on are  expected  to
meet the following principal criteria:

          *       they will be ready for investment without the need for material re-structuring by  the
                  Company;

          *       via an injection of new finances or specialist management, the Company can enhance the
                  prospects and therefore the future value of the investment;

          *       geological data will be available confirming the potential  presence of hydrocarbons in the
                  area;
    
          *       they will be in areas where oil and gas are already being produced, such that necessary
                  infrastructure is in place;
    
          *       they will be able to benefit from the Directors' existing network of contacts; and
    
          *       they will have the potential to deliver significant returns for the Company.

However, these criteria are not intended to be definitive or exhaustive and the Company may  make  an
investment which does not fulfil any or all of the investment criteria if the Directors believe  that
such  an investment is in the best interests of Shareholders as a whole. In the event that the Company
finds such an opportunity, Shareholder approval will be sought at the appropriate time.

The Directors envisage that investments made by the Company will be long term and do not intend  that
the Company should exit for the foreseeable future once any investment is made.

The Directors believe that their broad collective experience together with their extensive network  of
contacts  will  assist  them in the identification, evaluation and funding of  appropriate  investment
opportunities.  When  necessary, other external professionals will be engaged to  assist  in  the  due
diligence  on  prospective  targets  and their management teams. The  Directors  will  also  consider
appointing additional directors with relevant experience if required.

At present the Directors are seeking suitable investment and acquisition opportunities. They have not,
however, carried out any due diligence on any targets and no commitments have been entered into.  Once
a suitable opportunity has been identified, initial due diligence will be carried out by the Directors
where it is believed to be appropriate or necessary.

The Directors  recognise  the investment strategy outlined above carries a certain  degree  of  risk.
However, they believe that the successful implementation of such an investment strategy may result  in
strong capital growth for Shareholders.

The Directors  believe  that the status of the Company as a publicly traded Investment Vehicle will
enable it to obtain favourable terms in providing capital investment for opportunities in  which  it
invests. The Directors intend to fund such investments or acquisitions using a mixture of cash, equity
and/or  debt. The Company may seek to raise additional funding either prior to or at the same time  as
the Company carries out any substantial acquisition or investment.

If the Company has not made a material investment within one year following Admission, the Directors
intend to  seek Shareholder approval for the continuation of its investment strategy. The  Directors
also  intend that such approval will be sought in each subsequent year if it has not made a  material
investment by then.

The cash  held  by the Company on Admission will principally be used to cover costs incurred  by  the
Company  in identifying potential acquisitions and investments. Operating costs will be maintained  at
the minimum level consistent with the Company's status as a publicly quoted company.

Subscription

The Company has raised GBP444,000 (gross of expenses) through the Subscription of 44,400,000  Ordinary
shares at a price of 1p per share.

Directors and Consultant

Brief biographical details of the Directors are set out below:

Rudolf Kleiber - Chief Executive Officer (aged 60)

Rudolf  has over 34 years of experience in the oil and gas exploration and production sector,  working
with both established and early stage companies. He is a highly experienced international oil industry
manager  with strong commercial, technical and organisational skills and an entrepreneurial  approach.
He  has  worked  as a geologist at Royal Dutch Shell and Shell Winning in Egypt and has  also  been  a
Director  of Nigeria Operations and Vice President for Phillips Petroleum Middle East-Africa.  He  was
the  successful  founder  and CEO of a junior Canadian oil company, Elko Energy  Inc.,  raising  US$24
million  for the company which has recently been involved in the drilling of two wells in Denmark  and
Holland. Rudolf has been responsible for commercial oil and gas discoveries and field developments  in
Nigeria,  Egypt,  Norway and Denmark. Rudolf has a Diploma (MSc) in Geology from Tuebingen  University
and a Master of Science in Business Administration from Boston University.

Patrick Rocholl - Chief Financial Officer (aged 54)

Patrick has extensive experience in operational financial and commercial roles within the oil and  gas
sector,  extending  to  corporate  advisory roles in Mergers  and  Acquisitions.   Patrick  was  Group
Financial Controller at Chariot Oil & Gas Limited in the run up to that company's AIM flotation in May
2008  and  was responsible for managing the delivery of its work programme on a timely and  innovative
basis  and  significantly  within budget. From 2006 to 2007 Patrick was the Director  responsible  for
Mergers  and  Acquisitions at Calash Limited after an extended career in senior finance  positions  at
both  Schlumberger  and Halliburton. Patrick is also a Director of Cap Energy Limited,  a  PLUS-quoted
investment vehicle.

Jens-Christian Olsen - Consultant
        
The Directors will be assisted by Jens-Christian Olsen, an independent consultant with 35 years of oil
and  gas  experience.  Jens is the owner of Danpec AS, a Danish oil & gas consultancy which he founded
in  1981  after 4 years work at the Geological Survey of Denmark. Mr. Olsen has, in co-operation  with
Fugro  N.V.  and TGS-NOPEC ("TGS"), acquired a major commercial geophysical database over  the  Danish
North  Sea  which  has  been licensed by several oil companies and which  has  lead  to  oil  and  gas
discoveries.  Mr.  Olsen has, over the years, established significant experience in international  new
ventures, prospect generation and strategic planning, has a wide network of industry contacts and  has
presented  numerous technical papers at international oil and gas conferences. Mr. Olsen  has  worked
with  Mr.  Kleiber on a range of North Sea projects since 1981 including the start-up of  Elko  Energy
Inc.

Directors' and other Interests

The interests (including rights to subscribe and short positions) of the Directors (all of which  are
beneficial, unless otherwise stated) (so far as is known to the Directors, or could  with  reasonable
diligence be ascertained by them) or any connected persons in the issued share capital of the Company
is as follows:

        Director                         Number of Ordinary       % of Issued Share      Options at
                                               Shares                  Capital           Admission
                                                                                              
        Rudolf Kleiber                       20,000,000                 21.19            7,000,000
                                                                                              
        Patrick Rocholl                      10,500,000                 11.12            7,000,000
                                                                                              

In  addition  to the holdings disclosed above the Company has been notified of the following  holdings
which  on  Admission, represent more than 3 per cent. of the issued share capital or voting rights  of
the Company:

        Name                         Number of Ordinary Shares    % of Issued Share      Options at
                                                                       Capital           Admission
                                                                                              
        Starvest Plc                        40,000,000                  42.37            25,000,000
        Danpec AS                            5,000,000                   5.30               Nil
        Dr. Winfried Kurtz                   3,000,000                   3.18               Nil

The Directors of the Company are responsible for the contents of this announcement.

For further information please contact:

Nordic Energy Plc
Rudolf Kleiber                                  Tel:  01932 865111

Patrick Rocholl                                 Tel: 020 7681 6114

St Helens Capital Partners LLP
Duncan Vasey or Mark Anwyl                      Tel: 020 7368 6956

Contact Information

  • Nordic Energy Plc