International law firm Ashurst is advising EnQuest PLC on its £107 million rights issue and in relation to two class 1 transactions. EnQuest is one of the largest independent UK oil producers in the UK North Sea with production from offshore fields in the UKCS and Malaysia. Its shares are listed on the London Stock Exchange and NASDAQ Stockholm.
The rights issue is being undertaken in order to raise $100 million cash consideration needed by EnQuest to exercise an option to acquire a remaining 75 per cent. interest in the Magnus field, following the completion of its acquisition of a 25 per cent. interest in the field in December 2017.
EnQuest also intends to exercise an option to assume decommissioning liabilities for the Thistle and Deveron fields in exchange for receiving $20 million. The exercise of these two options are class 1 transactions under the Listing Rules and require the approval of EnQuest's shareholders. EnQuest believes the proposed transactions complement its strategy to be the operator of choice for maturing and underdeveloped hydrocarbon assets.
Corporate partner Karen Davies led the Ashurst team on the capital raising and corporate matters and resources partner Julia Derrick advised on the exercise of the Magnus and Thistle options. Finance partner Huw Thomas has advised the company on the debt financing aspects, partner Nicholas Gardner advised on tax matters and counsel David Baxter on options and incentives arrangements.
Commenting on the deal, relationship partners, Huw Thomas and Nick Williamson said:
"We are delighted to have supported longstanding client EnQuest on this important deal, which is a follow-up from having advised EnQuest on the original acquisition of Magnus."
The rights issue is fully underwritten by JP Morgan and Bank of America Merrill Lynch, advised by Simmons & Simmons.
Hamilton Advokatbyrå KB is advising Enquest on Swedish legal matters