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Malka Oil Malka Oil AB (the `Company`) has retained SEB Enskilda AS (the `Manager`) to advice on and effect a contemplated share issue directed towards professional domestic and international investors.
The contemplated share issue will amount to between 25,000,000 - 50,000,000 new shares, at a subscription price to be set between SEK 4.70 and 5.30 per share. Any such new shares will be issued according to the authorization provided to the board of directors at the annual general meeting on June 11, 2008.
The proceeds from the transaction will be used for:
* Completion of pipeline infrastructure to connect to the Transneft pipeline, including separation and measuring unit, which will enable the Company for a strong ramp-up in production. * Stimulation of existing wells. * Drilling and stimulation of new wells in order to expand production and reach production targets.
The shares offered and subscribed in the private placement will be settled immediately by way of transfer to the subscribers upon payment of already listed shares made available for the Managers by existing shareholders, including the primary insider Mats Gabrielsson and/or companies controlled by him, (the Lenders) based on a standardized Stock Lending Agreement between the Manager and the Lenders, under which the Lenders receive no compensation. Accordingly, all shares offered in the private placement are tradable immediately after delivery to the investors. The shares borrowed from the Lenders will be returned to the Lenders by and upon the issue of new shares have been registered.
For further information, please contact: Fredrik Svinhufvud, Managing Director Malka Oil, tel +46 8 5000 7811, mobile +46 708 708 708 Richard Tejme, CFO, tel +46 8 5000 7812 mobile +46 707 31 52 17
For further information on Malka Oil AB, see the website www.malkaoil.se
Malka Oil AB is listed on OMX First North (ticker MAL.SS) and is an independent oil and gas production company operating in the Tomsk region in western Siberia. Their current position consists of oil and gas assets for license block number 87 in the said region. The block has a surface of 1,800 square kilometers. There are currently three oil fields at the license block, namely Zapadno-Luginetskoye ("ZL"), Lower Luginetskoye ("LL") and the Schinginskoye oil field, and a large quantity of other not yet drilled oil structures. The ZL and LL oil fields are in production and these two oil fields field have also went through reserve classification by the Russian State Committee of Reserves (GKZ). A considerable drilling programme was carried out in 2007. The GKZ registered extractable oil and condensate reserves in the categories C1 and C2 amounted to 97 million barrels at the end of 2007. The company's own estimate of its extractable oil and condensate reserves in the three existing oil fields on license block number 87 is currently 140-190 million barrels. Malka Oil's license block is surrounded by a large number of producing oil and gas fields.
Reasonable caution notice: The statement and assumptions made in the company's information regarding Malka Oil AB's ("Malka") current plans, prognoses, strategies, concepts and other statements that are not historical facts are estimations or "forward looking statements" concerning Malka's future activities. Such future estimations comprise but are not limited to statements that include words such as "may occur", "concerning", "plans", "expects", "estimates", "believes", "evaluates", "prognosticates" or similar expressions. Such expressions reflect the management of Malka's expectations and assumptions made on the basis of information available at that time. These statements and assumptions are subject to a large number of risks and uncertainties. These, in their turn, comprise but are not limited to i) changes in the financial, legal and political environment of the countries in which Malka conducts business, ii) changes in the available geological information concerning the company's projects in operation, iii) Malka's capacity to continuously guarantee sufficient financing to perform their activities as a "going concern", iv) the success of all participants in the group, or of the various interested companies, joint ventures or secondary alliances, v) changes in currency exchange rates, in particular those relating to the RUR/USD rate. Due to the background of the many risks and uncertainties that exist for any oil-prospecting venture and oil production company in its initial stage, Malka's actual future development may significantly deviate from that indicated in the company's informative statements. Malka assumes no implicit liability to immediately update any such future evaluations.
