Oil&gas Regs Regulatory News (OGDC)

11 Dec 2006 07:01

Oil & Gas Development Company Ltd11 December 2006 NOT FOR DISTRIBUTION IN THE UNITED STATES, CANADA OR JAPAN OGCDL Over-Allotment Option Exercised Additional 53,294,000 shares sold Islamabad, 11 December 2006 - The Privatisation Commission of the IslamicRepublic of Pakistan today announced that Citigroup, Goldman Sachs Internationaland BMA Capital had exercised the over-allotment option over 53,294,000 ordinaryOGDCL shares in the form of GDSs. This completes the final element of theinstitutional offering. Including the over-allotment option and the retail offering, gross proceeds ofthe Offer are expected to amount to PKR 49,353 million (US$811mn). BMA Capital, Citigroup and Goldman Sachs International are Joint Lead Managerswith Citigroup and Goldman Sachs International acting as Joint GlobalCo-ordinators and Bookrunners for the international offering and BMA Capital asLead Manager and Bookrunner for the domestic offering and joint lead manager ofthe international offering. The retail offer of 21,505,000 Shares to investors in Pakistan at a price of PKR110 per Share will commence in December and is expected to be completed within afew weeks thereafter; the retail offer price represents an effective discount ofalmost 3% to the Institutional Offer price after adjusting for the Company'sannounced first quarter dividend payment of PKR 1.75 per Share that is notavailable to participants in the retail offering. Commenting on the successful exercising of the over-allotment option, ZahidHamid, Minister for Privatisation and Investment, said: "The exercising of the over-allotment option in full completes this landmarkinstitutional offering of OGDCL shares. The additional shares sold have raised afurther US$100m that will, in accordance with the law, be used to pay down thenational debt and for poverty alleviation. Once the retail offer has beencompleted, the total proceeds of the transaction will amount to US$811m, makingthis the biggest transaction by any Pakistani company in the last decade. ThisOffering has been very encouraging and is a strong signal of confidence byforeign investors in today's Pakistan." -- Ends -- For further information please contact: Capital MS&L Claire Maloney +44 20 7 307 5341 / +44 0770958 479Nicholas Bastin +44 20 7255 5117 / +44 7931 500066 Overview OGDCL is the largest petroleum exploration and production, or E&P, company inthe Pakistan oil and gas sector, with a primary focus on gas. It holds thelargest portfolio of the recoverable hydrocarbon reserves of Pakistan, at 32% ofgas and 37% of oil, respectively, as of June 30, 2006, and contributed 22% ofthe country's total natural gas production and 48% of its oil production for theyear ended June 30, 2006 on a net basis1. With a portfolio of 46 exploration licences, the company has the largestexploration acreage in Pakistan, covering 39% of the total awarded acreage as ofJune 2006. While its focus to date has been on onshore exploration, the companyhas also recently begun conducting offshore exploration activities, an areawhich the company believes has significant untapped potential. OGDCL had a net profit of PKR 45.8bn for the year ended June 30, 2006 and PKR12.0bn for the three months ended September 30, 2006. 1 based on data compiled by the Directorate General of Petroleum Concessions, orDGPC These materials are not an offer of securities for sale in the United States.The securities may not be offered or sold in the United States absentregistration with the United States Securities and Exchange Commission or anexemption from registration under the U.S. Securities Act of 1933, as amended.The Company has not registered, and does not intend to register, any portion ofthe offering in the United States, and does not intend to conduct a publicoffering of Securities in the United States. This communication is directed only at (i) persons who are outside the UnitedKingdom or (ii) persons who have professional experience in matters relating toinvestments falling within Article 19(1) of the Financial Services and MarketsAct 2000 (Financial Promotion) Order 2005 (the "Order") and (iii) high net worthentities, and other persons to whom it may lawfully be communicated, fallingwithin Article 49(2) of the Order (all such persons together being referred toas "relevant persons"). Any investment activity to which this communicationrelates will only be available to and will only be engaged with, relevantpersons. Any person who is not a relevant person should not act or rely on thisdocument or any of its contents. Stabilisation/FSA This document is an advertisement and not a prospectus and investors should notsubscribe for any securities referred to in this document except on the basis ofthe information in the prospectus published by the Company in connection withthe admission of the Company's Global Depositary Receipts to the Official Listof the Financial Services Authority. Copies of the prospectus are availablefrom the Company's registered office. The information contained in this communication does not constitute an offer ofsecurities to the public in the United Kingdom within the meaning of the PublicOffers of Securities Regulations 1995. No prospectus offering securities to thepublic will be published in the United Kingdom. Persons receiving thiscommunication in the United Kingdom should not rely on it or act on it in anyway. In any EEA Member State that has implemented Directive 2003/71/EC (together withany applicable implementing measures in any Member State, the "ProspectusDirective") this communication is only addressed to and is only directed atqualified investors in that Member State within the meaning of the ProspectusDirective. This information is provided by RNS The company news service from the London Stock Exchange