OKEA ASA intends to launch an Initial Public Offering and apply for listing on the Oslo Stock Exchange

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OKEA ASA (the “Company” or “OKEA”) hereby announces its intention to launch an initial public offering of its ordinary shares and to apply for a listing on the Oslo Stock Exchange (the “IPO”)

OKEA is a fast-growing independent E&P company operating on the Norwegian Continental Shelf (“NCS”) with a high-quality asset portfolio and a management team with a proven track record. The Company was founded in 2015 and has in less than four years been transformed into a significant NCS producer with a top-tier operator organisation.

After the NOK 4.5bn acquisition of Shell’s interests in the Draugen and Gjøa fields last year, the Company has a diversified portfolio totaling ~90 mmboe 2P+2C resources, and a net production of more than 20,000 boepd. The production has a stable outlook that provides the Company with a strong free cash flow that will be redeployed into further organic and inorganic growth.

In addition to realising the material upsides identified in the currently producing assets, OKEA is actively pursuing a strategy of developing fields with less than 100 mmboe reserves. As the NCS matures further, a significant share of future production is expected to come from such fields, creating significant opportunities for OKEA as an agile independent specialised on this segment. OKEA’s strategy has already proven highly valuable to the Norwegian society with the Company turning the Yme project from decommissioning to a robust and economically attractive field development with first oil expected in H1 2020. Currently, OKEA is also maturing the Grevling / Storskrymten fields into a joint stand-alone development, which, if realised, will be OKEA’s first operated field development and represent another example of OKEA’s ability to identify opportunities, plus working up the three operated licenses awarded in the APA 2018.

Following of the Shell Acquisition, OKEA obtained Shell’s interest in the Draugen field and inherited a highly capable operator organisation. As operator, OKEA is planning to extend the life of the Draugen field to 2035 and beyond through a range of identified IOR and infill drilling opportunities. Beyond operating Draugen in an efficient way, the organisation ensures that acquisitions of new operated fields can be taken on with minimal additional manning and costs, providing capacity to pursue a range of inorganic growth opportunities.

Major shareholders in OKEA, as of today, are Bangchak Corporation (49.33%), Seacrest Capital Group (34.98%), and OKEA’s founders Erik Haugane, Anton Tronstad, Knut Evensen and Ola Borten Moe collectively own 3.78%.

Erik Haugene, CEO of OKEA, commented:

“OKEA has quickly established itself as a material independent E&P company on the NCS and after the Shell Acquisition and successful finalization of integration of the Shell operator organisation, we are well-positioned to execute our organic growth strategy and pursue further M&A opportunities. OKEA has ambitious targets for increased efficiencies and reduced development costs on NCS and is determined to be an active owner and operator, creating value for OKEA, its partners and the Norwegian state. The decision to proceed with an IPO marks a new and exciting chapter for OKEA. Through co-founding Aker BP and leading the company through its early-day growth phase, OKEA’s management team has extensive experience from the public market and we are certain that a listing will enhance our ability to execute on OKEA’s strategy and create value for our shareholders.”

Chaiwat Kovavisarach, Chairman of the Board, commented:

“We are highly pleased with the decision to proceed with an IPO of OKEA following the positive feedback the company has received from institutional investors. The management team has in record time grown the Company into a material NCS independent and with the current portfolio and numerous growth opportunities available, the timing for an IPO is right. On behalf of the Company’s largest shareholder, BCPR Pte. Ltd. (“Bangchak Corporation”), I would also like to emphasise that we view our investment in OKEA as long-term and strategically important, and we look forward to supporting the company further in its growth.”

Company Highlights

  • Pure-play NCS-focused independent founded by a team with a strong track record of value-creation.
  • Well positioned to exploit the opportunities arising from the changes in NCS dynamics, creating opportunity for smaller operators like OKEA.
  • Low cost production base of close to 20,000 boepd with material identified upsides, in addition to several key development projects.
  • Nimble and low-cost strategy focused at developments and exploiting upsides at and around producing


  • Tier 1 operating organisation inherited from A/S Norske Shell positions OKEA to execute on its organic and inorganic growth strategy.
  • Proven M&A track record and well positioned to become the next NCS consolidator.
  • Strong industrial and financial backers in Bangchak Corporation and Seacrest Capital Group.

Offering Highlights

The IPO will support the Company’s strategy and enable OKEA to accelerate its growth plans going forward.

The IPO will comprise a public offering to institutional and retail investors in Norway and a private placement to certain institutional investors internationally. The transaction will likely consist of a primary offering of circa USD 100 million and may involve a secondary sale. The Company’s major owners and founders may reduce their ownership in connection with the IPO subject to demand and pricing, however, they will remain substantial shareholders after the IPO. Greenshoe and lock-up provisions are expected to be in line with conventional market practice. It is expected that the IPO will take place before the summer holiday in Norway (end of June 2019), however, the exact timing of the IPO remains subject to receiving the relevant approvals from the Oslo Stock Exchange and the Norwegian Financial Supervisory Authority, as well as the prevailing equity capital market conditions.

Pareto Securities AS, Skandinaviska Enskilda Banken AB (publ), Oslo branch ("SEB") and SpareBank 1 Markets AS are acting as Joint Global Coordinators and Joint Bookrunners in connection with the IPO (collectively referred to as the “Managers”). Advokatfirmaet Schjødt AS is acting as legal advisor to the Company and Arntzen de Besche Advokatfirma AS is acting as legal advisor to the Managers.

Further announcements relating to the IPO will be made in due course.