Millennium Finance Corporation advises Anzon Energy to issue securities worth US$ 75 million to RAK Petroleum

AEL will primarily use the proceeds to further its development by strengthening its existing positions and fund its plans in the Middle East, with a primary focus on the UAE. MFC's advisory also extends to AEL signing a Memorandum of Understanding (MoU) with RAK Petroleum to form a joint venture (JV) at a later stage.

The proposed JV will explore interests beyond the Middle East with clearly stated objectives of building a major influential oil and gas exploration & production group in several geographic locations.

According to the agreement, AEL will issue 3.8 million shares at a price of US $ 2.25 per share to RAK Petroleum to raise a total of US$ 8.55 million. Anzon Investments Limited, a wholly owned subsidiary of AEL, has also issued to RAK Petroleum unsecured and unsubordinated Bonds for US$ 37.5 million, while Anzon Investments Limited has issued to RAK Petroleum unsecured and unsubordinated Convertible Bonds for US$ 37.5 million.

Laurent Lavigne du Cadet, Head of Oil and Gas at Dubai-based Millennium Finance Corporation, said: "This transaction is an important step for both parties from a strategic perspective as it creates a strong base for a future cooperation between RAK Petroleum and Anzon Energy to exploit oil and gas opportunities located in RAK and the surrounding areas".

"Anzon Energy Ltd and RAK Petroleum will create a joint venture with a view to explore and develop assets located in the Middle East, where RAK Petroleum and Anzon Energy Ltd would act as co-operators and apply the same technology expertise that has made the success of the BMG field development in Australia," he added.

He noted: "The major influence of RAK Petroleum linked with the technical expertise of AEL will certainly generate some successful developments in the region. The combination of RAK Petroleum's influence and AEL's technical management expertise coupled with the financial capacity of the two organisations underpins the rapid projected growth of this new alliance."