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Teddy Sagi's Genesis to raise $100m in London IPO

19 Aug, 2012 17:39
שלח תגובה במיילRon Steinblatt

Genesis Energy, which owns 42.5% of the Pelagic licenses, has hired investment bank Canaccord Genuity.

Genesis Energy (Israel) Ltd. through which Teddy Sagi owns 42.5% of the offshore Pelagic licenses, has hired Canaccord Genuity to start scheduling meetings beginning next week for an IPO on the London Stock Exchange to raise $90-120 million during the fourth quarter of 2012. Genesis Energy has not set a valuation for the offering, and if it cannot hold the IPO at the value it wants, it may decide to continue financing its operations from independent resources.

Sagi already has one company traded in London - online gaming software developer Playtech Cyprus Ltd. (LSE:PTEC), which has a market cap of £1 billion. Sagi who owns 40% of Genesis Energy through family trusts, founded the company 18 months ago, through which he owns several offshore oil and natural gas exploration licenses.

In addition to five of the Pelagic licenses - Aditya, Ishai, Lela, Yahav, and Yoad - which cover 500,000 acres 130 kilometers west of Israel between the Leviathan discovery and the Cypriot Aphrodite discovery, Genesis Energy owns 31.5% of the Oz license, and 6% of the Arie license, 60 kilometers offshore, south of the Myra license.

Genesis Energy will use proceeds from the IPO to finance its share of two exploratory wells at the Pelagic licenses over the next 12 months.

Genesis Energy's partners in the Pelagic licenses are companies owned by Beny Steinmetz, whichown a 42.5% stake, Israel Opportunity Energy Resources LP (TASE: ISOP.L), with 10%, and Norways AGR Group In., with 5%. In June, Ryder Scott Company LP estimated the potential gas reserves in the Pelagic licenses at 6.7 trillion cubic feet (TCF), about three-quarters of the Tamar discovery.

Drilling of the first well at the Pelagic licenses is due to begin by the end of 2012, and the licensees have already hired the Homer Ferrington rig, which is currently drilling the Myra 1 well to be followed by the Sarah well, for this purposes. Drilling of the second Pelagic well is due in 2013. The cost of the two deep water wells is $200 million, of which Genesis Energy's share is $85 million.

Published by Globes [online], Israel business news - www.globes-online.com - on August 19, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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