Fairfield Energy Launches $500 Million IPO

(Reuters) – British oil and gas company Fairfield Energy said it plans to raise around $450 million and $500 million through a listing on the London Stock Exchange and will use the funds to boost its oil production.

North Sea-focused Fairfield said on Thursday it expected to complete the offering and be admitted to London’s main market in July.

The company was founded in 2005 and is controlled by private equity firm Warburg Pincus [WP.UL]. The IPO market has been weak recently, although fund manager Jupiter managed to price its offering on Wednesday. [ID:nLDE65A19F]

“Fairfield has built a business with a balanced portfolio of assets and is now extremely well placed to capitalise on the significant opportunities that exist in the UK North Sea,” said Chief Executive Mark McAllister.

Fairfield said it would look to continue its strategy of acquiring mature producing assets being sold by larger companies and buying assets from smaller companies with a view to developing discoveries or redeveloping producing assets.

Fairfield currently produces from four oil fields and posted total production of 4.6 million barrels of oil equivalent (mboed) per day in 2009 which it forecasts will grow to 34.4 mboed in 2014.

The company has proved plus probable reserves of 94.1 million barrels of oil equivalent.

Goldman Sachs and Credit Suisse are acting as joint sponsors and bookrunners on the IPO, while Hawkpoint is the financial adviser.

(Reporting by Sarah Young; additional reporting by Caroline Copley; Editing by Victoria Bryan)