Africa Oilfield Logistics Limited- Acquires 49% of oilfields logistics business

05 August 2013

Africa Oilfield Logistics Ltd (AIM:AOL), an investment company established to invest in the oil and gas logistics support industry in sub-Saharan Africa, is pleased to announce the acquisition of a 49% interest in Ardan Risk & Support Services (‘Ardan’, the ‘Acquisition’), a cash generative oilfields and logistics business with operations currently in Kenya, Ethiopia and Mauritius.  In addition to the Acquisition, the Company has been granted exclusivity for a period of 180 days with a view to entering into an agreement to acquire the remaining 51% interest in Ardan.

Highlights:

  • Acquisition of Ardan will represent maiden transaction for Africa Oilfield in accordance with its investment strategy to “acquire or invest in businesses associated with the oilfield services and logistics support industry in respect of oil and gas exploration”
  • Consideration of US$4 million to be satisfied by the allotment of 32,979,355 new ordinary shares in the Company at a price of 8p per share (the ‘Consideration Shares’)
  • Founded in 2008, Ardan has established itself as a cost-effective, quality provider of turn-key logistics and support services solutions to international corporate clients operating primarily in the oil & gas and mining sectors in East Africa, achieving consistent growth since inception
  • Ardan is ideally positioned to capitalise on projected rapid growth in:
  • East Africa, which includes two of the world’s leading emerging resource development areas:
  • the oil exploration sector in the East African Rift Valley
  • the East African (including Mozambique) offshore gas exploration sector
  • Additional markets, particularly in Madagascar, West and North Africa
  • Ardan has developed and recruited a highly experienced operational team with particular emphasis on delivering logistical solutions for the oil and gas industry in Africa
  • Africa Oilfield to provide loan funding to drive growth through increasing Ardan’s market share and expansion into new jurisdictions

Africa Oilfield Director Andrew Groves said, “Ardan represents a compelling investment opportunity for Africa Oilfield, combining a strong industry reputation, a secure client list of oil and gas majors, and significant growth in revenue over its five years of operation. 

“I am confident that the considerable growth that the Ardan team have achieved over recent years can be further enhanced and to facilitate this, Africa Oilfield has committed to provide funding to enable the Ardan team to accelerate its expansion into new services and geographic regions, and attract further “blue chip” oil and gas clients to Ardan’s roster.

“With an aggressive expansion programme underway, a high calibre management team in place and top quality projects underway and in the pipeline, Ardan expects to continue its growth trajectory over the next few years.

“Ardan is a robust business with huge scope for growth, and with the investment, guidance and network of Africa Oilfield, I am confident that we are ideally positioned to assist Ardan in its expansion towards becoming the oilfield services and logistics company of choice across the region.”

Further Information

Ardan is a family owned, Kenyan headquartered, oilfield services and logistics business that specialises in providing turn-key management solutions to clients operating in East Africa. Ardan’s services currently include:

  • Construction and Engineering
  • Procurement and Logistics
  • Catering and Camp Management
  • Safety, Health, Environment and Quality Management
  • Health and Safety Training
  • Medical Services
  • Community Relations
  • Personnel Placement

The Ardan team have:

  • Considerable experience in managing complex operations from initial planning stages through to site rehabilitation
  • Highly experienced professionals in the fields of project management, risk management and security planning, civil engineering, drilling and seismic support, quality, health and safety, logistics and environmental management
  • Expertise in construction and engineering projects including road construction, airstrips, bridges, clinics & schools, water installations and pipelines and oil well locations
  • Experience in the design, construction and management of permanent and semi permanent camps
  • Experience in the formulation and implementation of Occupational Health and Safety Plans and Procedures, Medical and Emergency Response Plans, Health and Safety Training programmes
  • Remote site medical support department with full time team of Doctors and Advanced Life Support Paramedics and a supply of fully equipped clinics and supply of drugs and medical equipment
  • Specialist risk assessors to implement risk mitigation plans, including planning for rig moves and movement of other high value cargos
  • Experience in the recruitment and placement of personnel to support all aspects of oil and gas operations
  • A commitment to community liaisons, local recruitment and training, ensuring sustainability

Ardan’s focus since incorporation has been on East Africa, with much of the growth leveraged to the increase in exploration around the Rift Valley area in Kenya.  Companies such as Tullow Oil plc and Africa Oil Corp. have made significant commitments to drilling in this area and have already encountered oil.  Against this backdrop of increased exploration activity, the board of Africa Oilfield believe that there is an urgent and real need for professional, internationally certified and reliable local partners who can provide quality oilfield services and logistics to the exploration companies operating in the region, at a competitive cost.

Already a premier oilfields partner in Kenya, Ardan has established a branch office in Ethiopia and is now focussed on expansion into other appropriate East African jurisdictions, including Mozambique, Madagascar, Tanzania, as well as exploring growth opportunities in West and North Africa. 

The board believes that Ardan has foundations in place to build upon its current reputation, services, and relationships and to use these relationships to expand into new geographic areas as well as to expand its product offering to include support services relating to pipeline construction and servicing. 

In anticipation of formal completion of the acquisition, application has been made to the London Stock Exchange for the Consideration Shares to be admitted to trading, with effect from 9 August 2013. The Consideration Shares will represent 12.89% of the Company's enlarged issued share capital after completion of the Acqusition, which enlarged issued share capital will then comprise 255,773,366 ordinary shares. Michael Pelham, founder and chief executive of Ardan, will be interested in 9.19% of the Company’s share capital following completion of the Acquisition.

** ENDS **

 

Enquiries:

Andrew Groves Tel: +44 (0) 20 7408 9200

Africa Oilfield Logistics Limited

David Foreman / Rick Thomson Tel: +44 (0) 20 7894 7000

Cantor Fitzgerald Eurpoe

Andy Cuthill Tel: +44 (0) 20 7104 2332

MC Peat & Co LLP

Susie Geliher / Charlotte Heap Tel: +44 (0) 20 7236 1177

St Brides Media & Finance Ltd

 

Published : 05/08/2013 13:56:11

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