Each one in plain English, with the numbers worked through for a shareholder.
27 Feb 2018capital raising announcement● NeutralMajor
On Feb 26, 2018 (effective Dec 31, 2017) Erin cut the conversion price of the $50M convertible note held by Oltasho Nigeria Limited, now described as its largest stockholder, from $10.46 to $2.75 per share and converted it immediately. The $61.4M owed (principal plus interest) became 22,327,327 new shares and the note is deemed paid in full, which removes that debt but dilutes other shareholders. This resolves the earlier Allied convertible note thread; the filing does not say how Oltasho relates to Allied, which would be an inference.
9 Feb 2017capital raising announcement● NeutralMajor
On Feb 6, 2017 Erin and its Nigerian subsidiary EPNL signed a $100.0M pre-export finance facility with The Mauritius Commercial Bank, guaranteed by Standard Bank of South Africa with PIC's backing (PIC, the second largest shareholder, has recourse to Erin). It is secured by an oil sales contract with Glencore for all oil from OML 120/121, bears interest at 3-month LIBOR plus 6%, and is repaid in instalments from June 2017 to December 2019. In return Erin pays PIC a 2.5% upfront fee and will issue it warrants worth 20% of the guarantee amount (priced at the share's closing price when funds arrive). Zenith, the existing lender, signed an override deed sharing sale proceeds and enforcement with MCB. This adds debt on top of the Zenith loan, and the warrants could dilute existing shareholders.
22 Nov 2013capital raising announcement● NeutralMajor
On November 19, 2013 the company agreed to buy Allied's remaining economic interest in the OML 120/121 production sharing contract (including the Oyo Field), giving it a 100% economic interest, for $170 million cash, 497,454,857 new shares and a $50 million convertible subordinated note (convertible at $0.7164/share, LIBOR plus 5%, five-year term). To fund the cash, it agreed to sell 376,884,422 shares to South Africa's Public Investment Corporation for $270 million in two equal installments. The filing says PIC's stake is expected to be about 30% after a special stock dividend. The deal needs a stockholder vote including a majority of shares excluding CEHL and its affiliates, plus Johannesburg Stock Exchange listing, and is expected in the first half of 2014. CEO Lawal is linked to the sellers and CEHL holds about 57%, so a special committee of independent directors reviewed and recommended it. The deal ends the Purchase and Continuation Agreement of December 2010, replaced by two $25 million milestone payments for discoveries outside Oyo. This resolves the earlier non-Oyo milestone thread.
13 Dec 2010capital raising announcement● NeutralMajor
On Dec 10, 2010 the company signed a Purchase and Continuation Agreement that replaces the Oct 11 Heads of Agreement for the non-Oyo rights, keeping the same $5 million upfront and the same milestone payments ($5M, $5M, $20M, $25M; up to $55 million in shares if Allied chooses). It adds a termination right if closing has not happened by the later of Jan 31, 2011 or another agreed date, with $500,000 liquidated damages for breach, and CPL (the company's subsidiary) joins as a buyer. Chairman Lawal's related-party interest is again disclosed. This continues the thread from October, which was expected to close by Nov 30 and now has a later outside date.
12 Oct 2010capital raising announcement● NeutralMajor
On Oct 11, 2010 the company signed a binding Heads of Agreement to acquire CAMAC's remaining interest in the same Nigerian production sharing contract (OML 120 and 121) outside the Oyo Field, with closing expected by Nov 30, 2010. It pays $5 million cash within 15 days of closing, then can keep the rights by paying $5 million, $5 million, $20 million and $25 million at four milestones (first non-Oyo well drilled, commercial discovery, development plan approved, commercial production), in cash or, at Allied's option, shares (up to $55 million in shares in total). If it declines at a milestone the rights revert to CAMAC with no refund. Chairman Kase Lawal is a director of the CAMAC sellers and owns 27.7% of CAMAC International Limited, so this is a related-party deal. It continues the CAMAC relationship from the April closing.
23 Nov 2009capital raising announcement● NeutralMajor
Pacific Asia Petroleum (the company's name at the time) signed a deal on Nov 18, 2009 to buy CAMAC Energy Holdings' interest in the Oyo Field production sharing contract off Nigeria, for $38.84 million in cash plus new common stock equal to 62.74% of the company's outstanding shares, so existing shareholders would be heavily diluted. Closing is expected in Q1 2010 and needs a financing of at least $45 million (none arranged yet), shareholder approval and other agreements; after closing CAMAC would nominate 4 of 7 directors for a year. The filing also says talks with Molopo to buy its 26.1% stake in Fortune Liulin Gas (Liulin coalbed methane block) were mutually ended.
The company signed a non-binding-style cooperation agreement (a commitment to negotiate in good faith, subject to due diligence) with Well Lead Group to buy up to a 39% interest in Northeast Oil (China) Development's 95% stake in two producing oil blocks in Heilongjiang, China. The price for 25% is $9.8 million ($2.5 million cash at closing, $2.5 million cash in installments, and $4.8 million of company stock), with an option on a further 14% for $5.5 million cash. Well Lead holds the deal exclusive until November 30, 2008 in return for 25,000 company shares or, at its option, $50,000. This would be the company's first producing oil asset in the filings so far (inference: its earlier China deals are coalbed methane/tight gas blocks).
