Kuwait Energy plots LSE listing to finance Iraq investment
(ShareCast News) - Kuwait Energy announced its intention to float in London to raise $150m to finance its bid to become the leading independent oil and gas exploration company in the MENA region.
In particular, funds from its flotation will be used to develop its assets in Iraq which management expects to contribute significantly to growth.
Company chief Sara Akbar highlighted the strategy in place to raise production rapidly, especially via its Block 9 asset in Iraq which, she said, had some of most favourable fiscal terms in the region.
The company is pursuing a listing on the premium segment of the London Stock Exchange's official list and intends to achieve a free float sufficient to meet the related eligibility requirements.
Founded in 2005, the Middle East and North Africa-focused group has 10 exploration, development and production oil and gas assets spread across Egypt, Iraq, Oman and Yemen.
Of those, six were already producing and seven were operated by a group company, Kuwait Energy said in a statement.
The group's 2P working interest reserves attributable to the MENA region increased from 18.1mm barrels of oil equivalent as of 31 December 2008 to 810.0mmboe by 2016.
"Over the coming years, the Group's focus is on developing its current 2P working interest reserves which are in excess of 800 mmboe," Akbar added.
Total average daily working interest production for Kuwait Energy was at 24,432 boepd in 2016 and had risen to almost 27,000kboepd in the first quarter, according to Akbar.
That output generated revenue of $138.9m and operating cashflow of $77.2m.
Kuwait Energy expects admission to trading to take place in June 2017 and to be eligible to trading in the FTSE UK indices.