 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
 |
Prospectuses
| Corporate Governance |
| • Directives |
| • Prospectuses |
| • General meetings |
3 February 2006:
RXT will issue NOK 140 mill. convertible bond
The Board of Directors of the seismic company Reservoir Exploration Technology ASA (RXT) today resolved to issue a convertible bond of NOK 140 mill. with pre-emptive rights for existing shareholders.
The convertible bond is underwritten among a group of existing shareholders, hereby guaranteeing the full subscription of the bond issue.
Due to the favorable market conditions seen in the 2C/4C seismic market where RXT is operating, equipment for a third crew will be ordered with a planned delivery in December 2006, with the crew to be fully operational from Q1 2007. This is consistent with the company’s earlier communicated growth strategy. The crew will be financed with the convertible bond and cash flow from operations.
CEO Michael Scott states: “There is, as expected, significant growth in the use of both 2 Component seismic (2C) for improved data quality for exploration and development purposes, and 4 Component seismic (4C) for improved reservoir imaging. Already, there is evidence of oil companies deferring programs into 2007, owing to the lack of available and suitable capacity in 2006”.
The convertible bond has a 5% coupon, a 5 year maturity and a strike price of NOK 40 per share. The existing shareholders will receive an offer to subscribe in the bond issue on the basis of their shareholding in RXT as of 6 February 2006. The shareholders will receive non-transferable pre-emptive rights to subscribe in the bond issue. The subscription period will be from 10 February to 20 February at 10.00 CET. The convertible bond is planned to be listed on the Oslo Bors along with the shares in the beginning of March 2006. A separate prospectus on the listing will be issued prior to this. The Manager for the bond issue and the listing is Pareto Securities ASA.