Enquest Plc · LSE:ENQ
Enquest — Merger or Acquisition (September 2018)
10 slides from Enquest's merger presentation, September 2018
Slide 1: Proposed Rights Issue to acquire additional interest in Magnus
Proposed Rights Issue to acquire additional interest in Magnus
Slide 2: Disclaimer
Disclaimer This presentation is not for release, publication or distribution, directly or indirectly, in or into the United States, Canada, Australia, Japan, the Republic of South Africa or any other jurisdiction in which such publication or distribution is unlawful. This presentation does not const
Slide 3: Disclaimer continued
Disclaimer continued This presentation may not be reproduced (in whole or in part), distributed or transmitted to any other person without the prior written consent of the Company and is not intended for distribution to, or use by, any person or entity in any jurisdiction or country where such distr
Slide 4: The Magnus Acquisition
The Magnus Acquisition @nQuest
Slide 5: Acquiring additional equity in a high-quality asset
Acquiring additional equity in a high-quality asset Material growth opportunity with attractive economics 75% additional equity interest in Magnus Total consideration of $300 million; $100 million cash, $200 million vendor loan Expected to add c.60 MMboe (2P reserves)/c.10 MMboe (2C resources) a
Slide 6: Transaction Rationale
Transaction Rationale Magnus option Magnus infill wells Thistle option Attractive terms; improved further in Follows successful M-62/M-63 infills Provides $20m additional liquidity the current oil price environment in 2018 Further aligns interests Adds 30% to 2P reserves as at Wells targ
Slide 7: Magnus and SVT assets: A good strategic fit
Magnus and SVT assets A good strategic fit Magnus: high-quality asset with significant potential High-quality Upper Jurassic turbidite sands; c.2.0 bn boe HCIIP, c.50% Recovery Factor Acquired initial 25% equity in December 2017: Added 14 MMboe of 2P reserves; 2C resource adds anticipated to m
Slide 8: Summary rights issue and transaction information
Summary rights issue and transaction information Rights issue terms Transaction structure Proposed gross proceeds c.£106.8m / c.$138.0m Gross proceeds c.$138m Rights issue terms 3 for 7 Less: Subscription by the EBT / transaction costs c.($11m) Closing price at 6 September 2018 38.6p Issue price 21.
Slide 9: Appendix
Appendix @nQuest
Slide 10: Key Transaction Terms
Key Transaction Terms 3 for 7 rights issue ($138m gross proceeds / $127m net proceeds*) to fund: Thistle option Magill option ($100m) Magnus infill wells ($27m) 75% interest in Magnus, 9% in SVT Canute: Granted January 2018, exercisable up and additional interests in associated Targets the L