Petrolia Group ('the company' or 'the Group')
The Company was originally incorporated as Petrolia Drilling AS in March 1997, a provider of drilling and well technology services through the ownership and operation of semi-submersible and jack up drilling rigs.
Key events 1997-2008:
1997 – incorporated on 17 March and listed on the Oslo Stock Exchange on 12 May. Purchased the SS Petrolia in May and entered a 10-year bareboat charter of the drill ship DS Valentin Shashin in September.
2005 - entered a new bareboat charter for DS Valentin Shashin in conjunction with Sinvest ASA and for this purpose the companies formed a 50/50 joint venture company, Venture Drilling AS.
2005 - 2007 – the drilling & well technology business was expanded by gradually acquiring shares in two companies, PetroMENA ASA (52%) and Petrojack ASA (40%).
2007 - entered the oil field services business through the acquisition of equipment rental business Independent Oil Tools AS (IOT) on 15 January. Sold the SS Petrolia in October.
2008 - acquired 30% of Deep Water Driller Ltd.
RESTRUCTURED & REFOCUSED 20o9 – 2013
As a result of funding difficulties related to the international banking crisis, PetroMENA AS and Petrojack ASA were declared bankrupt in December 2009 and March 2010 respectively. Following this, the Board and Management made substantial efforts to re-finance, restructure and re-focus the Petrolia Group
Several measures were implemented to restructure and improve the operations of the oilfield services business, IOT, with positive results. This division became highly profitable as it was in an excellent position to capitalise upon the buoyant market for its services. This was a result of high oil prices and consequent increase in drilling activity.
The Company started to re-build its drilling and well technology business with the acquisition of two land rigs. It also acquired oil & gas exploration licences in the NCS to form the foundations of a new oil and gas exploration & production division, Petrolia Norway AS (‘PN’).
In order to move closer to key markets for the Group and at the same time maintain a European presence, the Company relocated its head office to Cyprus. The cross-border merger of Petrolia ASA and Cypriot public limited company, Petrolia E&P Holdings Plc, took place to create a new European company. Shareholders of Petrolia ASA received new shares in Petrolia E&P Holdings SE in exchange for their shares in Petrolia ASA. The new company, remained listed on the Oslo Stock Exchange and started trading with its new shares on 29 October 2012 under the symbol “PDR”.
Key events 2009 - 2013:
December 2009 - Petromena ASA was declared bankrupt.
March 2010 - Petrojack ASA was declared bankrupt.
January 2011 - shares in Deepwater Driller Ltd were sold for USD 34.5m
March 2011- DS Valentin Shashin (re-named “Deep Venture” in 2007) was re-delivered to its Russian owners, Arktilmorneftegasrazvedka, after a full settlement of USD 138m was reached.
August 2011 – Petrolia Norway acquired 10% of the Ulvetanna prospect (PL356) subject to Government approval as a licence holder.
September 2011- acquired two land rigs and equipment from IOR for new shares in Petrolia to the value of NOK 74m.
February 2012 - acquired 85% of the shares of Catch Fish Holding B.V., a leading provider of well fishing, and remedial and whip stock services for the oil and gas industry.
February 2012 – PN approved as licensee on The Norwegian Continental Shelf.
May 2012 - acquisition of 30% of 4 production licences in the Norwegian North Sea from Front Exploration AS.
October 2012 - Petrolia ASA was re-domiciled to Cyprus creating Petrolia E&P Holdings SE.
January 2013 – PN awarded 50% of the promising PL674 licence in the 2012 Awards in Predefined Areas (APA)
January 2013 – Petrolia E&P Holdings SE changed the company name to Petrolia SE.
March 2013 – PN entered an agreement with Statoil to purchase 10% of PL 628.
The significant fall in oil prices from October 2014 has led to a challenging environment for the oil and gas industry. The result of this has been a decrease in margins and a sharp reduction in activity in both the OilService and Drilling & Well Technology Divisions. Ongoing cost cutting measures and business improvement programmes have been implemented across all businesses in the Group. As part of this cost cutting exercise the Drilling and Well Technology and OilService Divisions have been merged. In 2015 the Company chose not to participate in a new share issue by Petrolia Norway AS allowing other investors to subscribe for shares. Following the successful fund raising Petrolia SE’s interest was reduced to 49.9%.
Key events 2014 - to date:
January 2014 – PN agreed to acquire 10% of PL546 from Lundin Norway AS.
January 2014 – PN awarded 20% of licence PL7395 in APA 2013.
August 2015 – PN issues new shares raising NOK 50m and announces plans to become pre-qualified as an Operator. Petrolia SE’s interest in PN reduced to 49.9%.
January 2016 – PN was awarded 1 licence in the APA 2015 (PL774 B) and is now partner in 7 licences on the NCS.
FUNDING HISTORY (Petrolia Group)
August 2011- the Company completed a rights issue raising NOK 25.3m to strengthen its equity and capital base.
September 2011 - a further NOK 7.6 m was raised through a private placement with employees and the Board of the Company.
The Company has been funded by a series of bond loans since inception. The current bond (PDR06) matures in 2019. It is in process of being listed on the Nordic ABM with ticker PDR06 PRO.
Bond loans were originally denominated in Norwegian Kroner (NOK) however in January 2016 bondholders accepted an offer to exchange the existing NOK bond loan (PDR05) maturing in June 2017 for a new bond loan (PDR06) denominated in US Dollars. The new bond loan matures on 21 July 2019 and carries an interest rate of 6% per year.
As of August 2016, the value of the outstanding bond loan was USD 32,774m or USD 17,686m net (including Borrower’s Bonds of USD 15,087m.)