Monday, 29 October 2012
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
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.
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.
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.
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
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.
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
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
* 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
* 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.
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
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
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
Name Number of Ordinary Shares % of Issued Share Options at
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