Tag Archives: Djibouti

Atlas Development & Support Services lists on the Nairobi Securities Exchange

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Nairobi-headquartered support services and logistics company Atlas Development & Support Services (ADSS or Atlas cross listed on the Growth Enterprise Market Segment (‘GEMS’) of the Nairobi Securities Exchange, having successfully raised KES 450 million (US$5 million) through a private placement to Kenyan investors.

According to Atlas CEO Carl Esprey the listing hopes to tap from the growing opportunity in the region as well as leverage on local content.

“The strong interest from Kenyan investors is recognition of the opportunity to create a world class development and support services provider in Eastern Africa. We have demonstrated robust financial performance, world class service delivery and regional scale to position Atlas as the best way to gain exposure to this opportunity,” says Esprey.

The funds raised in the placing will be used to provide additional capital for organic growth and acquisitions around Atlas’s support services offering in Kenya and the region.

The placing, which was offered solely in Kenya, was completed through the issue of 39,139,827 new ordinary shares at a price of KES 11.50 per share (being 8.13p, in line with the closing price of the Company’s shares on AIM on 20 November).

Andrew Wachira, Acting CEO, NSE says, “The cross listing of Atlas is another major step towards our goal of ensuring that companies that have substantial operations in Africa are accessible to both Kenyan and international investors. This cross listing is historic for our exchange and it is directly in line with Vision 2030, which envisions that the growth in Kenya’s natural resources industries will also help grow our financial institutions.”

“The cross listing further justifies Kenya’s stance that its financial market remains very attractive to both local and international investors. ” adds Mr Wachira.

Atlas recently commenced construction on a KES 180 million (US$2 million) planned investment to build a logistics hub in Lokichar, Turkana County. This will help companies and government operate more effectively across the Turkana basin.

Atlas has invested KES 1.4 billion (US$ 15 million) in Kenya over the last 12 months and plans to invest over KES 4.5 billion (US$ 50 million) in Kenya over the next five years.

Carl Esprey says, “We’re Kenyan-headquartered and our core operation was founded here in Nairobi. Today we’re proud to also call ourselves a Kenyan-listed company. The cross listing will provide further local support for Atlas and represents a natural alignment with our Kenyan stakeholders and customers.”

The shares have been offered today on the GEMS market – at a price of KES 11.50 (8.13p) per share – a slight discount on London.

Edward Burbidge, CEO says, “This cross listing is a very exciting transaction for both the Nairobi and London financial markets. Here in Kenya it will provide investors with a unique opportunity to gain exposure to this sector in Eastern Africa, through a company that has 100 per cent of its shareholder register tradable in both Nairobi and London.”

Burbidge Capital acted as placing agent and Nominated Advisor to the placing and cross listing.

Atlas provides international standard turn-key development and support service solutions to multiple sectors, including oil & gas, mining, geothermal, construction and infrastructure. It employs over 700 Kenyans in delivering engineering, infrastructural development projects and workforce accommodation solutions in Kenya, Tanzania, Djibouti, Mozambique and Ethiopia.

Atlas Development secures first contract in Mozambique

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African focused support services and Logistics Company Atlas Development & Support Services Limited has announced that, in line with its expansion strategy for East Africa, it has been awarded its first support services contract in Mozambique.

The agreement, with an international oil company, underlines Atlas Development’s increasing penetration into the oil & gas support services market and its growing reputation with international blue-chip operators.

According to Atlas CEO Carl Esprey the multi-service agreement reflects the Company’s strategy of supporting early stage exploration activities with a view to securing and implementing long term development contracts.

“Atlas Development has its sights set on becoming the turnkey support services company of choice in East Africa, and today’s contract with another international oil company not only marks our transition in a new strategic jurisdiction, but also validates Atlas Development’s reputation as a quality and international standard operator,” says Esprey.

The contract also marks an entry point into a new country and complements the Company’s existing operational presence in Kenya, Ethiopia and Djibouti.  The Company is headquartered in Nairobi and has regional offices in the Turkana region of Kenya, Addis Ababa and Djibouti.

Esprey adds that this first contract in Mozambique could be the beacon for a new presence in the country.

“Mozambique, as with other countries in East Africa including Kenya, Ethiopia and Djibouti, holds a significant amount of potential for us.  We are therefore pleased to have secured this contract to support our client’s entry into Mozambique and believe that this initial agreement will pave the way for a long term strategic presence in the country.”

Mozambique is an important new territory for the Company as it is host to the development of multiple large scale oil & gas, mining and power projects, making it an ideal target for Atlas Development.

The company’s Board adds intends to further leverage its position as a market leader in the provision of turnkey support services and logistics solutions to additional operators within the burgeoning resource and power market in Mozambique.

This new contract comes even as the company prepares to dual list in the Nairobi Securities Exchange later in the month with Atlas saying discussions are in the final stages.

 

Oyster oil and gas to start drilling in Djibouti and Madagascar in 2015

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Oyster oil and gas will begin drilling in Djibouti and Madagascar in 2015 the first wells by the company since its formation in 2010.

The company that has four blocks in Djibouti measuring 14,400 square kilometers following the PSA signing in September 2011 says it is on the second phase of its exploration where it is processing details from a seismic carried out by the government in 1985 covering 123 kilometers.

Oyster says it is also considering acquiring 2D seismic in the blocks even as it prepares for its maiden drilling.

Over the period 2012 – 2013 Oyster completed gravity & magnetic studies; extensive geology & geochemical fieldwork & analysis that revealed potentially significant section of oil source rock; indicators are in the “late oil window”; un-migrated free oil present in outcrops & a good quality potential reservoir in both Jurassic & Cretaceous sandstones.

From the studies carried out already Oyster says it has come up with early conclusions that the pre-rift Jurassic reservoir sequences, extending regionally across Eritrea, Djibouti, Somalia and into Ethiopia are continuous over the area.

“We are targeting pre rift sediment of Adigala-Guban Jurassic basin in blocks 1 and 4 and a southern extension of red sea basins and also regional Jurassic play,” said vice president Colin Wilson during a presentation in the Eastern Africa Oil,Gas/LNG and Energy conference.

The frontier company also targets its Madagascar block (where it holds 10 percent interest on block 1101 with Afren holding 90 percent) for drilling in the next 12 months according to Wilson with the block having a recoverable oil potential of 2.1 billion barrels of oil in the 11,200 square kilometers.

This will however not be the first wells drilled on the block with a well drilled on block Ankaramy – 1 in 1902 encountering bitumen deposits at less than 200 meters while another on block Ambilobe-1 drilled in 1964, failed to reach the prospective Triassic Isalo formation.

Colin adds that ongoing exploration in previously not ventured areas is part of the company’s strategy to provide a wide range of major oil basin and play types.

 

 

 

Altaaqa Global Opens East Africa Office

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The new Nairobi office will serve as a hub for Altaaqa Global’s sales and operations in the East Africa region

Dubai-based Altaaqa Global CAT Rental Power, a global provider of temporary power solutions, has recently opened a branch in Nairobi, Kenya to serve the East Africa territory. The office will cater to several countries, including Tanzania, Rwanda, Burundi, Uganda, Kenya, Somalia, Ethiopia, Sudan, South Sudan, Djibouti and Eritrea.

Peter den Boogert, General Manager of Altaaqa Global, said, “The business activities in the East Africa region are flourishing and the economy has been thriving throughout recent years, resulting in an increased demand for power. At Altaaqa Global, our objective is to be on the ground as quickly as possible when customers require our energy solutions, and our new branch will enable us to reach this region faster than before. We realize that our industry is driven by emergency needs and hard deadlines, but uses equipment that requires substantial lead times to acquire. With the combined fleet of our sister company in Saudi Arabia, Altaaqa Global has approximately 1,400 MW of rental power readily available so that we can focus our efforts on rapid deployment and customer satisfaction.”

Steven Meyrick, Board Representative of Altaaqa Global, commented, “This strategic expansion is in line with our vision to be the leading and the most preferred temporary power solutions provider before year 2020. During our geographic expansion, we will continue to heavily invest in human resources, further improve our business processes, and expand and diversify our fleet of CAT power generators. We now have the capability to provide power plants running on various fuel, such as piped natural gas (PNG), liquefied petroleum gas (LPG), compressed natural gas (CNG), liquefied natural gas (LNG), flare gas, diesel, dual-fuel (70% gas and 30% diesel), and, very soon, heavy fuel oil (HFO).”

Altaaqa Global will also provide environmental and social programs in East Africa. Meyrick added, “As part of our commitment to help local communities in East Africa and, eventually, in the entire Sub-Saharan region, we are actively embracing corporate social responsibility initiatives that will help alleviate the social needs of our immediate environs.”

“East Africa has a promising economic outlook within the energy and engineering sectors,” said Majid Zahid, Strategic Accounts Director of Altaaqa Global. “We are delighted to open our new office to provide interim power plants ranging in size and with the latest power generation technologies. We are determined to serve various industries, such as oil & gas, petrochemicals, mining, electric power utilities, industrial manufacturing and maritime. Through our office in East Africa, Altaaqa Global will be able to provide our clients with uncompromising personalized service. In the energy rental industry, all requirements are treated as individual and unique, and we will be able to deliver the exact rental power station to all of our enquiries using our local knowledge and global expertise.”

East Africa has experienced encouraging economic growth in recent years, and is gradually being regarded as an important supplier to different markets around the world. Market analysts attribute the notable growth of the region to several factors, including large-scale infrastructure development, economic reforms and new discovery of energy and natural resources. Kenya, among other African countries, is expected to become a vital regional financial and business hub, with a consistent 5% to 7% economic improvement year-on-year. Tanzania, Somalia, Uganda and South Sudan are also predicted to make inroads into economic stability, following the discovery of oil and gas in their territories. Additionally, Ethiopia and Rwanda are projected to show remarkable development, owing to an expansion in agricultural activities and a strong reform record, respectively.