7 June 2017
Starvest Plc ("Starvest" or "the Company")
Investee Company Kuwait Energy Announces Intention to List on LSE
Starvest PLC (LON:SVE), the London Stock Exchange AIM listed specialist mining and resources investment business, is pleased to provide an update on its investee company Kuwait Energy PLC which earlier this month announced its intention to seek a listing on the London Stock Exchange (LSE).
Highlights
· Investee company Kuwait Energy PLC ("Kuwait Energy") announces intention to list on LSE seeking a valuation of US$1 billion
· Kuwait Energy generating significant revenues from oil and gas production in the Middle East and North Africa regions;
· Outstanding growth in oil and gas reserves with significant upside for additional resources
Callum Baxter, Chairman and CEO commented: "We have followed the development of Kuwait Energy for several years and it is very pleasing to see the significant oil and gas discoveries and the company pushing into production to the point where they are now generating substantial annual revenue. Plus there is greater potential with the development of additional reserves from large assets. Starvest notes the intention of Kuwait Energy to seek a premium listing on the London Stock Exchange and we are closely following the progress of the IPO."
Kuwait Energy PLC
Kuwait Energy was established in 2005 and has built a portfolio of oil and gas focussed assets in the Middle East and North Africa regions. Starvest originally held a major founding stake in Concord Oil and Gas PLC which was subsequently acquired by Kuwait Energy. Starvest has retained its shareholding in Kuwait Energy since that time.
Kuwait Energy has spent recent years developing its asset base and, pleasingly, has made significant discoveries with several assets being successfully brought into production. It has 10 assets across four countries in a majority operated asset portfolio. As at 31 December 2016 its reserves were in excess of 800 million barrels oil (equivalent) and 2016 production averaged approximately 24,000 barrels of oil (equivalent) per day. For the year to 31 December 2016 Kuwait energy had revenues from operations of over US$125 million and over US$155 million for the year to 31 Dec 2015.
The company is operating in proven prolific hydrocarbon producing basins and has good local relationships and track record of operations. It works under a UK corporate governance code with established Corporate Social Responsibility and Occupations Health and Safety programmes. Kuwait energy has a stable management team with a long history of operating and investing in its targeted regions.
Since 2010 Kuwait Energy's oil and gas reserves have seen outstanding growth from 20 million to over 800 million barrels (equivalent) through acquisition and exploration success. There are significant growth opportunities in the two assets of Block 9 and Siba, both in Iraq, which could potentially total over 1 billion barrels (equivalent) in reserves with two wells already in production.
Kuwait Energy has sought a listing on a recognised exchange for several years. An earlier attempt was abandoned in late 2014 following a significant decline in the oil price. However, in early May 2017 Kuwait Energy announced its intention to list on the LSE and is targeting a valuation of approximately US$1 billion (£750 million). It is reported that the company will apply for admission in June. Following IPO, Starvest expects to see multiple times its initial investment in Kuwait Energy if the listing occurs at the suggested valuation of US$1 billion. Starvest has been a long term holder of its shares in Kuwait Energy and continues to monitor the admission progress.
To diversify its sector exposure Starvest is also looking to take a direct stake in projects and is currently evaluating opportunities in several commodities such as gold, copper and cobalt. We will update the market as acquisitions are completed.
Starvest is a specialist mining and resource investment company and has the industry knowledge and market exposure to select compelling opportunities early in the investment cycle.
Callum N Baxter
Chairman & Chief Executive
7 June 2017
Enquiries to:
Starvest PLC
Callum Baxter Chairman/CEO 07922 255 933 cbaxter@starvest.co.uk
John Watkins Finance Director 07768 512 404 jwatkins@starvest.co.uk
Grant Thornton UK LLP (Nomad)
Colin Aaronson or Harrison Clarke 02073 835 100
SI Capital Ltd (Appointed Broker)
Nick Emerson or Andy Thacker 01483 413 500