| Ramco Energy PLC | |||
| Ticker: | RCO | 4 Rubislaw Place | |
| Exchange: | American Stock Exchange | Aberdeen, UK AB10 1XN | |
| Industry: | Natural Resources (SIC Code 1382) | ||
| Type of Shares: | American Depositary Receipts | Filing Date: | 2/6/97 | |
| U.S. Shares: | 4,000,000 | Offer Date: | 3/10/97 | |
| Non-U.S. Shares: | 1,000,000 | Filing Range: | $17.74 - $19.91 | |
| Primary Shares: | 5,000,000 | Offer Price: | $17.60 | |
| Secondary Shares: | 0 | Gross Spread: | $1.10 | |
| Offering Amount: | $94,125,004 | Selling: | $0.66 | |
| Expenses: | $1,250,000 | Reallowance: | $0.10 | |
| Shares Out After: | 25,522,565 |
| Manager | Tier | Phone |
| J.P. Morgan Securities Inc. | Lead Manager | (212) 648-0517 |
| CS First Boston | Co-manager | (212) 325-2000 |
| Howard, Weil, Labouisse, Friedrichs | Co-manager | (504) 582-2607 |
| UBS Securities Inc. | Co-manager | (212) 821-4510 |
| Issuer's Law Firm: | Akin, Gump, Strauss, Hauer & Feld |
| Bank's Law Firm: | Davis, Polk & Wardwell |
| Auditor: | Coopers & Lybrand |
| Registrar/Transfer Agent: | Morgan Guaranty Trust Company of New York |
Dollar amounts in U.S. millions except for per share data | |||||
| Full Year Audited Income | Latest Unaudited Income | Prior Unaudited Income | Balance Sheet | ||
| 12/31/96 | 12/31/96 | ||||
| Revenue: | $14.02 | Assets: | $25.75 | ||
| Net Income: | -$1.90 | Curr Assets: | |||
| EPS: | -$0.09 | Liabilities: | $25.38 | ||
| Prior EPS: | Curr Liabilities: | ||||
| Cash Flow/Oper: | Equity: | $0.38 | |||
| Cash Flow/Fin: | Cash: | ||||
| Cash Flow/Inv: | |||||
| Business Description |
| The company is an independent energy company focused on the exploration and production of oil and gas in the former Soviet Union. The company has actively pursued oil and gas projects in the FSU since 1989 when it began to shift its strategic focus away from its original oilfield services business, which it continues to operate. During the early 1990s, the company played an instrumental role in identifying to international oil companies the development opportunities of such opportunities through its founding role in the formation of an international consortium of major oil companies to develop a prospect in the Azerbaijan sector of the Caspian Sea. In pursuing exploration and production and related infrastructure opportunities in Azerbaijan, Russia, Georgia, Kazakstan and elsewhere in the FSU, the company intends to capitalize on its experience and the relationships that it has developed in the region in connection with the development of the ACG Project and the negotiation of other projects. |
| Competition |
| The exploration and production business is highly competitive. In seeking to obtain desirable exploration and development prospects in Azerbaijan and the other countries of the FSU, the company faces significant competition from both major and large independent multinational oil companies. Many of these competitors have financial and other resources substantially in excess of those available to the company and may, accordingly, be better positioned to acquire and exploit prospects, hire personnel and market production. In addition, many of the company's competitors may be better able to withstand the effect of changes in industry conditions such as worldwide oil and gas prices and levels of supply and the application of government regulations, including fiscal regimes, which affect the company's business and which are beyond the control of the company. In its oil service business in the North Sea producing region for the year ended December 31, 1996, the company believes that it had the largest market share and had only a single competitor. Although the company currently has only one direct competitor in the region, there are a number of oil service companies that could enter the market to compete with the company. Accordingly, there can be no assurance that the company will maintain its market share in the North Sea region. Nevertheless, the company is a recognized industry leader in the provision of corrosion engineering and tubular care maintenance services and it believes that it can continue to compete effectively in this field. |
| Business Plan |
| The company's strategy is to become a leading international independent energy company by playing a key role in identifying, structuring, negotiating and developing oil and gas opportunities in the FSU. It intends to pursue these opportunities through consortia with major oil companies and alliances with major international oilfield service companies. The company believes that (I) its relationships in Azerbaijan and elsewhere in the FSU developed over the past seven years by Stephen E. Remp, the company's Chairman and Chief Executive Officer, and other members of the company's management team, (ii) its founding role in the formation of the Consortium and AIOC, (iii) its close working relationships with other major oil and oilfield service companies and (iv) its experience in the region give the company the foundation and credibility with which to implement its business strategy. |
| Use of Proceeds |
| The proceeds from the proposed offering will be used to primarily acquire interests in oil and gas prospects in the former Soviet Union and to fund the exploration, appraisal and development of such prospects and related infrastructure projects. |