Tulip Oil Netherlands Offshore B.V. (“Tulip Oil”, “TONO” or the “Company”), a wholly owned subsidiary of Tulip Oil Holding B.V., is pleased to announce the successful placement of a EUR 87 million 5 year senior secured bond (the “Bond”). The Bond is priced at 3M Euribor plus 8.5% and an application will be made for the Senior Secured Bond to be listed on the Oslo Stock Exchange.
The net proceeds from the issuance will primarily be used for the development of the Q07A gas field which was discovered in 2015 and lies 20km offshore the Netherlands in a shallow water environment. Tulip Oil was awarded a production license for the Q7/Q10a blocks on the 24th of July of this year by the Dutch Ministry of Economic Affairs.
Imad Mohsen, Chief Executive Officer stated: “The proceeds from the bond will enable Tulip Oil to put Q07A into production and generate significant cashflow. It will ultimately also allow the Company to explore the considerable potential of the Q7/Q10a blocks together with the other assets in the group.”
Tulip Oil will now proceed with developing the field which will become the largest single offshore producing asset in the Netherlands. The output is seen as an important contributor to the Dutch economy and will contribute to offset production reductions from other assets in the Netherlands.
Martin Bell, the Chief Financial Officer of Tulip Oil commented, “This bond issuance marks a significant step forward for Tulip Oil and a re-opening of the high yield bond market for the E&P sector. This is testament to the high quality of the Q07A discovery and the Tulip Oil management team.”
ABG Sundal Collier ASA acted as Sole Manager for the bond issue.
TONO owns a 60% interest in the Q07a/Q10 block and is the operator. Energie Beheer Nederland B.V. (EBN) holds the remaining interest.
Notes to the Editor:
Tulip Oil Holding B.V. is a privately-held exploration and production operator based in The Hague. The Company operates assets in both the Netherlands and in Germany and is owned by management and funds advised by GNRI.
Telephone: + 31707470300
Certain statements included in this announcement contain forward-looking information. By their nature, forward-looking statements involve uncertainty because they depend on future circumstances, and relate to events, not all of which are within Tulip Oil’s control or can be predicted by Tulip Oil. Although Tulip Oil believes that the expectations reflected in such forward-looking statements are reasonable, no assurance can be given that such expectations will prove to have been correct. Actual results could differ materially from those set out in the forward-looking statements. Any forward-looking statements made herein by or on behalf of Tulip Oil speak only as of the date they are made, euribor and Tulip Oil expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in its expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.