Presentation

Ping Petroleum UK Limited (“Ping UK”) is an independent E&P company focused on shallow water offshore production and development opportunities in the UK North Sea. The company’s core asset, the Anasuria Cluster was acquired from Shell and ExxonMobil in 2016 through a JV (50/50 ownership with Anasuria Hibiscus UK Limited) and consists of four producing fields tied-back to a centrally located FPSO, whereof Ping UK is the joint operator of three fields. The four fields have 2P reserves of 25.8 mmboe, and produced ~3.2 kboepd during 2020 from a total of eight wells, which Ping UK plans to increase to ~10.4 kboepd (net) by YE’23 through drilling of six infill wells and facility optimization.

Ultimate parent is Dagang Nexchange Berhad (DNeX) which is listed on Bursa Malaysia. In June 2021, DNeX increased its ownership in Ping Petroleum (Parent of Ping UK) from 30% to 90%, valuing the equity of Ping Petroleum to USD 130m.

The company issued a USD 50m senior secured Nordic bond in July 2021 to finance the development projects related to the Guillemot, Teal, Teal South and Cook fields in the UK Central North Sea.

The credit profile benefits from low-risk growth opportunities on producing fields, coupled with 1st lien security position, the bonds put on an escrow account and solid value backing. Despite a volatile oil price in recent years, the company should have a fairly low break-even level, providing resilience to lower oil prices.