Sign up UNITED KINGDOM
Proactive Investors - Run By Investors For Investors

Genel Energy PLC boosted as it reveals debt buy-back plan

Genel intends to buy back at least $50mln of the $730mln bond series.
Genel Energy PLC boosted as it reveals debt buy-back plan
In early deals Genel shares advanced 5.57p, or 7.57%.

Genel Energy (LON:GENL) has unveiled plans to reduce its indebtedness via a partial buy-back of bonds.

The group said it will carry out a reverse tender offer to the holders of $730mln worth of bonds, and it intends to repurchase at least ‘$50mln’ of the bonds’ face value.

Genel said it would determine the price of the bond buyback through a reverse book-build, otherwise known as a ‘Dutch auction’.

The buyback offer will take place between March 18 and March 22, and on March 23 the price and subsequently the number of repurchased bonds will be announced. Brokers DNB Markets and Pareto Securities have been appointed to manage the buy-back offer.

Genel shares advanced 5.57p, or 7.57%, in early deals to trade at 84.75p each.

It comes after small Kurdistan based peer Gulf Keystone warned, on Thursday, that it was unlikely to secure a refinancing of its debts soon. Gulf Keystone, in February, said it was reviewing its financing options including talks with several interested parties about possible asset transactions or a corporate sale.

Genel separately announced this morning that total proved (i.e. 1P) oil reserves at the 25% owned Tawke field had increased by 21% to 387mln barrels due to improved confidence over primary recovery rates across the field.

At the same time Tawke’s proved and probable (2P) oil reserves reduced to 543mln barrels at the end of 2015, from 680mln barrels at the end of 2014.

The reduction reflects production of49mln barrels in 2015, and the reclassification of 82.5mln barrels from 2P reserves to contingent resources pending a review of future investments into enhanced recovery and redevelopment plans.

Genel said its updated share of Tawke reserves would now amount to 241.9mln barrels, compared to 263.9mln as estimated at the time of its full year 2015 results statement.

Jamie_55a91591db06b.jpg


Register here to be notified of future GENL Company articles
View full GENL profile

Genel Energy PLC Timeline

Related Articles

trader celebrating
August 26 2016
San Leon is issuing new shares at 45p which is a 54% premium to the last price before trading was suspended in January.
oilOnshore.jpg
January 23 2017
Chief executive Matthew Idiens said "with the change in political regime in the US, we feel the incoming administration will be very supportive of our industry."
oil workers
January 23 2017
The Irish oil company has told investors that it is on track to kick off the Druid exploration well in June.

© Proactive Investors 2017

Proactive Investor UK Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.