Kulczyk to boost reserves and production by acquiring Winstar Resources

Kulczyk to boost reserves and production by acquiring Winstar Resources



26 квітня 2013 года
Конкорд Капитал

Kulczyk Oil Ventures Inc (KOV)


Kulczyk Oil Ventures (KOV PW) entered into an agreement to acquire 100% of Tunisia-focused Winstar Resources (WIX CN), the company announced on April 25. Winstar had net 2P reserves of 11.2 MMboe as of end-2012 with net production of 1,660 boepd in April. The transaction will double Kulczyk’s 2P reserves to 20.6 MMboe and boost net production 53% to 4,760 boepd.



As part of the deal, Kulczyk will offer 7.555 shares per each Winstar share, or CAD 2.50 in cash, limited to a maximum consideration of CAD 35 million in cash. The cash consideration will be funded by a consortium of investors led by Kulczyk’s major shareholder, while KOV will issue 272 million shares (56.4% of the current shares) to Winstar shareholders and the consortium.



In addition, Kulczyk Investments S.A. will convert the existing USD 12 million loan into common shares of KOV on or prior to the date of the acquisition, at the weighted average price for five days preceding the deal. Following the acquisition, KOV will undertake a 10:1 share consolidation and be renamed Serinus Energy, with dual listings in Toronto and the Warsaw Stock Exchange. Upon completion, Winstar shareholders will hold approximately 21% of KOV.



Roman Dmytrenko: We estimate Kulczyk will issue approximately 300 mln new shares to Winstar shareholders and the consortium of investors (62.2% of current shares outstanding). The terms of the agreement values KOV at CAD 0.33 per diluted share, or CAD 0.53 per share prior to dilution, which suggests a 20% upside to KOV’s current share price.

Источник: Конкорд Капитал

Аналитик: Роман Дмитренко
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