Maha Energy
Maha Energy - Maha makes smaller acquisition onshore US (ABG Sundal Collier)
2020-04-01 09:19
Expands US foothold
Debt-laden seller
Implied long-term Brent of USD ~38/bbl
Expands US footholdMaha Energy has entered into an agreement to acquire Dome Energy’s 160b/d asset in the Illinois Basin (U.S.) through USD 4m in cash and USD 0.25m of new short-term debt. In addition theres is a contingent considerations based on production (stable above 1,200b/d) and oil price WTI above USD 55/bbl. As of YE’19 the asset held 2P reserves of 2.9 mill. bbl. A substantial part of the resource base relate to future drilling activity.
Debt-laden seller
In its H2’19 report published yesterday, Dome Energy addressed the fact that a heavy debt burden has put pressure on the company’s operations, making the company a distressed seller, and as such an attractive target in Maha Energy’s M&A strategy.
Implied long-term Brent of USD ~38/bbl
We estimate that the transaction implies a long-term Brent of USD ~38/bbl. However, this is dependent on the pace of field development amongst other things. The company assumes only minor short-term debt and with NIBD of USD 8.2m as of YE’19.
- Läs mer på Introduce
Läsaren av innehållet kan anta att ABG Sundal Collier har erhållit eller kommer att erhålla betalning för utförandet av finansiella företagstjänster från bolaget. Ersättningen är på förhand avtalad och är inte beroende av innehållet.
info@introduce.se (Introduce.se)
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