KAMCO, IFIC launch the Rights Issue Offering of up to 17 million newly issued shares in NAPESCO KSC (Closed)

A resolution at its General Assembly meeting on 30 November 2005 provided NAPESCO's existing shareholders with the right to subscribe for 47 newly shares for every 100 shares held as of the date of the General Assembly. Each new share will be issued at 300fils per share consisting of 100 fils par value and 200 fils share premium.

NAPESCO, one of Kuwait's leading petroleum services companies, was founded as a closed Kuwaiti Shareholding Company on January 3, 1993 under Kuwait's commercial law. NAPESCO went public on the Kuwait Stock Exchange (KSE) on 18 October 2003.

Providing a wide range of services for the oil and gas sector in Kuwait, NAPESCO currently offers eight unique technology based oilfield services including well cementing, liquid nitrogen and environmental process controls. The Company's major clients include Kuwait Oil Company (KOC) and the Wafra Joint Operations (JO). It is estimated that 20-25 per cent of NAPESCO's market share is in the high pressure oil well drilling services.

The Company's capital as of 30 September 2005 was KD 3.6 million, while profits for the last nine months ending 30 September 2005 reached KD 439,599/-.The General Assembly resolution (dated 30 November, 2005) approved NAPESCO's capital increase from KD 3.6 million to KD 7 million by issuing 34 million new shares; 17 million are to be placed for existing shareholders, and the remaining 17 million shares are to be offered through a private placement, to be held in mid February 2006, to selected investors who will be approached directly by KAMCO and IFIC. The rights issue offering period will commence on 22 January, 2006 and close on 8 February, 2006.

The capital proceeds raised will be used to broaden NAPESCO's reach locally and regionally, especially in the Kingdom of Saudi Arabia. In addition, NAPESCO is planning to enter the oilfield services market in North Kuwait, where upstream operations, with technical assistance from international oil companies, are expected to commence post the approval of Kuwait's National Assembly on " Project Kuwait".

"With a focus on technical development, NAPESCO has developed a reputation for innovative solutions and customer service excellence," said Mobarak Jassim Al-Jassim, Vice Chairman and Managing Director, NAPESCO. "The company continues to develop new services and enhance existing services in response to current and future customer needs.

"The outlook for 2006 is encouraging with growth driven by new contracts and expansion into the oilfield services market in Saudi Arabia which will lead to an increase in revenues and profits through 2007. Strategically, NAPESCO is well positioned to maximize shareholders' wealth through expansion plans and potential acquisitions."

"KAMCO is proud to be selected by NAPESCO to lead the capital increase offerings in partnership with IFIC. We believe that this rights offer will be successful because of NAPESCO's strong operational and financial performance, Kuwait's booming economy, and the sector in which it operates. NAPESCO is considered an attractive investment opportunity with high potential for growth in such a vital sector,"

said Masaud Jawhar Hayat, Chairman, KAMCO.