KrisEnergy Secures Funding of US$115 Million

Friday, July 22, 2011
  • KrisEnergy secures funding of US$115 million with bond and credit facility

Singapore, 22 July 2011 – Upstream oil and gas company, KrisEnergy Holding Company Ltd, has successfully issued a five-year, US$85 million secured bond and entered into a three-year US$30 million revolving credit facility. Pareto Securities acted as Lead Manager and Bookrunner for the bond with Standard Bank Plc as Co-Manager.

Standard Bank Plc and Sumitomo Mitsui Banking Corporation (SMBC) were Mandated Lead Arrangers for the revolving credit facility, with Standard Bank Plc as Facility Agent. The net proceeds from these transactions will be used to repay the company’s existing acquisition facility of US$58.5 million and to fund development of its asset portfolio, including near-term oil development projects offshore Cambodia and Thailand.

Established in 2009, KrisEnergy is building and creating value across a diverse portfolio of exploration, development and production assets in Southeast Asia. The company has interests in 10 contract areas in Cambodia, Indonesia, Thailand and Vietnam. Its current production is approximately 5,300 barrels of oil equivalent from the B8/32 and 9A oil and gas fields in the Gulf of Thailand and the Kambuna gascondensate field in the Glagah-Kambuna contract area in Indonesia.

“These facilities provide long-term funding so that we may take existing assets through to first oil, continuing to diversify our production base. We are entering into an exciting phase with three development projects slated for completion by mid-2013 and early 2014. I want to thank Pareto, Standard Bank and SMBC for their ability to deliver in what has been an extremely uncertain market this summer,” said Keith Cameron, KrisEnergy’s Chief Executive Officer.

is a portfolio company of global energy investor, First Reserve Corporation, which in 2009 committed up to US$500 million of equity to assist management to build the business. US$300 million of the committed equity from First Reserve has been invested as of the end of June.

“This now completes our funding requirements for the three development projects and leaves us with approximately US$200 million in undrawn equity from First Reserve for future developments and acquisitions to further expand our existing portfolio in Southeast Asia,” commented Stephen Clifford, Chief Financial Officer for KrisEnergy.

Peter Heintzelman, Director Oil & Gas at Standard Bank Plc, commented: "KrisEnergy’s management has turned a strong track record into reality once again and our Asian and London teams are pleased to have completed another innovative facility for them and First Reserve, assisting them to the next stage in the company’s life-cycle.”

“We are pleased to see Keith and his team successfully achieve this next milestone and are excited to advance the next stage of growth for the company,” added Will Honeybourne, Managing Director of First Reserve Corporation and Non-Executive Chairman of KrisEnergy.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser. More

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