BW Energy has completed the private placement of US$100 million of new five-year senior unsecured bonds with a coupon rate of 10% per annum.
In Namibia, BW Energy is progressing the revised development plan for the gas-to-power project and analysing data from the 3D seismic survey completed in May 2023. Interpretation of the initial data has enhanced the depositional model and de-risked potential targets with additional prospects identified.
The company continued the work on securing long-lead items for a future exploration program.
The bond placement met strong investor demand across Nordic and international markets and was significantly oversubscribed.
Settlement of the bond issue is expected to occur on or about 21 June 2024, subject to customary conditions precedent.
An application will be made for the bonds to be listed on the Oslo Stock Exchange.
Net proceeds from the new bond issue will be used for general corporate purposes.
DNB Markets, part of DNB Bank ASA and Pareto Securities AS, acted as Joint Bookrunners, Fearnley Securities AS and Sparebank Markets AS acted as co-managers in the transaction.
The Kudu gas discovery is in the northern Orange sub-basin, approximately 130 km off the southwest coast of Namibia. It is situated in Petroleum Production License 003 (“PPL003”) which has an area of 4,567 square kilometres and the field water depth is approximately 170 metres. The field was discovered in 1974 with Kudu-1 and is delineated by seven subsequent wells.
BW Energy entered into a farm-in agreement for a 56% operated interest in early 2017, with NAMCOR holding a 44% joint venture interest. BW Energy signed a Farm-up agreement with NAMCOR increasing the company’s interest to 95% in the license and closed the transaction in 2021.
