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FlowStream Announces Closing of Equity Private Placement

October 25, 2013

ST. HELIER, JERSEY, 25th OCTOBER 2013

 

FlowStream Commodities Ltd (“FlowStream” or the “Company”) is pleased to announce that it has closed its first private placement.

The Company intends to use the net proceeds of the Offering for the acquisition of net profit interests over a currently producing offshore oil concession.

The Offering has been subscribed to by funds advised by leading global investment firm KKR, the Middle East backed investment firm Global Gate Capital (“Global Gate”), the only London listed royalty company Anglo Pacific Group and the founding members of the Company’s management, Board and Advisory team.

Jan Laubjerg, Chief Executive Officer at FlowStream, said: “We are delighted to be supported by such a sophisticated and complementary group of investors, each of whom share FlowStream’s vision of creating the market leading oil and gas streaming and royalty company.”

Josselin de Roquemaurel, Director at KKR, said: “We believe the FlowStream team has identified an exciting and scalable opportunity to create differentiated funding solutions for oil and gas companies and we are pleased to be partnering with management. The energy sector is an important focus for KKR’s investment activity worldwide and we look forward to working with FlowStream to achieve its ambitions in this new and growing market segment”.

Rudy Sayegh, Chief Executive Officer at Global Gate, said: “We believe that FlowStream has identified an opportunity to invest in oil & gas projects within a construct that offers an attractive risk reward profile to investors while providing a much needed funding solution to potential consumers of its capital.”

Brian Wides, Chairman at Anglo Pacific Group, said: “Anglo Pacific Group is looking forward to partnering with FlowStream both as an investor in this offering but also as a potential co-investor in future projects. We see strong synergies in the relationship with our deep understanding of natural resources royalties and FlowStream’s sourcing capabilities and technical expertise in the oil & gas sector.”

Canaccord Genuity and Liberum Capital acted as joint brokers and placement agents on the transaction.

 

Enquiries:

FlowStream Commodities Jan Laubjerg

Ben Iversen

+41 41 763 56 52

+41 41 763 56 52

Canaccord Genuity Alexis de Rosnay

Tim Redfern

 

+44 207 523 8000

Liberum Capital Clayton Bush +44 203 100 2000

 

Notes to Editors

About Flowstream Commodities Ltd.

FlowStream Commodities is a streaming and royalty company focused on the oil & gas sector. FlowStream provides upfront capital for oil & gas companies and in return receives an oil and/or gas stream on a specific license, lease or field. FlowStream also acquires existing royalties in the oil & gas sector. FlowStream is effectively a non-operating oil & gas company that does not need to fund capex or opex obligations. FlowStream, with the support of its shareholders, which include funds advised by Kohlberg Kravis Roberts & Co. L.P. (“KKR”), Global Gate Capital and Anglo Pacific Group, intends to grow and diversify its portfolio of streams and royalties by sourcing primarily development and producing assets on a worldwide basis. For more information, please visit flowstreamcommodities.com.

About KKR

Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $90.2 billion in assets under management as of September 30, 2013. KKR has been investing in the energy sector for almost 30 years, across the entire energy supply chain and multiple asset classes. Recent examples include the investment in Acteon, a UK-based global oilfield service provider, RigNet, a leader in oilfield digitization, and Mineral Acquisition Company, KKR’s partnership with Chesapeake Energy Corporation which invests in mineral and overriding royalty interests in key oil and gas basins in the United States. KKR & Co. L.P. is publicly traded on the New York Stock Exchange (NYSE: KKR), and references to KKR in this release include its subsidiaries, their managed investment funds and accounts, and/or their affiliated investment vehicles, as appropriate. For additional information, including a complete list of KKR’s energy investments, please visit www.kkr.com.

About Global Gate Capital

Global Gate Capital (GGC) is an investment firm affiliated with a core group of institutional and private investors from the Middle East. It focuses on bespoke alternative investment solutions in Private Equity, Real Estate and Special Situations. GGC’s investment philosophy is based on agility, entrepreneurship and partnerships with credible industry players. Its approach relies on investing globally, across the capital structure, in a core set of sectors with an attractive risk/return profile. Each investment is carried out through structures which mitigate downside risk while maintaining upside potential.

GGC’s investor base includes prominent institutions with a long history of investments and ownership of operating assets in the oil & gas sector. For additional information, please visit www.globalgatecapital.com.

About Anglo Pacific Group

A global natural resources royalties company. The strategy of the Group is to expand its mineral royalty interests in long-life mining assets. The Group achieves this through both direct acquisition and investment in projects at the development and production stage. The Group is focused on projects that have defined resources and near-term production. The Group has both corporate finance and real-world mining experience and takes an active approach to each project to achieve better returns at reduced risk. For additional information, please visit www.anglopacificgroup.com/index.php.

 

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