Niger Delta Exploration & Production Plc plans to raise additional $400 million (about N80billion) from the Nigerian capital market through a combination of private placement and Initial Public Offering (IPO).
Layi Fatona, Managing Director, Niger Delta Exploration & Production Plc who disclosed this Monday at NASD OTC Plc investors forum in Lagos said the company had already completed the first tranche of $100 million capital raising exercise through private placement.
NASD plc is the promoter of a Trading Network that eases secondary market trading of all securities of unquoted public companies primarily in Nigeria but with a focus on the West African region.
He added that the company would also extend its petroleum exploration activities across sub-Saharan Africa. He also urged shareholders to invest in the company, noting that it has consistently paid dividend to investors.
The shares of Niger Delta Exploration & Production Plc which trades on the NASD OTC Plc reached 52-week highs of N290 and 52-week low of N130 as at early this week.
“The next tranche of $300 million would be sourced through Initial Public Offering (IPO) that would open in few weeks” Fatona said, adding that the company is also seeking opportunities outside Nigeria and had entered into partnership with the State National Company of Southern Sudan for low cost entry opportunity in oil and gas exportation.
He noted that the synergy would transform the company from fully integrated Nigerian Oil & Gas Company to a Pan African company. The capital raising would fast-track the company’s repositioning exercise, through the acquisition of more assets and increase gas production.
“We are the only indigenous company that can boast of ownership of a mini refinery. Last year, we sold a total of 20.2 million litres of diesel to Port Harcourt refinery. We contribute to domestic market notably diesel. We have 2,000 licensed diesel buyers that come to our facility for diesel,” he said.
According to him, the company since inception has delivered 60 million litres of diesel to the Nigerian market. “We are currently embarking on cost cutting exercise and we are looking at other areas especially diversification and capital raising to increase production and acquire additional assets and facilities. We would expand penetration in serving Nigerian market. We would be a very strong player in Nigeria gas market.
“We have monetised and commercialised our gas and that has given us enough leverage. We also want to play in power generation and we would negotiate delivery of other products,” Fatona said.
