DVCF Oil & Gas Shops for N708m
DVCF Oil & Gas Plc is shopping for N708.7 million from investors to strengthen its operations and beef up its shareholders’ fund to N1.0 billion.
DVCF, a member of Deap Capital Management & Trust Plc, is a venture capital company with strategic interests and specialisation in integrated project management, consultancy services, marine logistics, waste management and well engineering for oil and gas industry among other services.
Shareholders of DVCF Oil had last April, at an Extra-ordinary General Meeting increased, its authorised share capital to N1.0 billion made up of 1.0 billion ordinary shares of N1.00 each from N292 million.
The N708.7 million would be raised through a private placement of 708,749,583 shares of N1 each at N1 per share between August 18 and August 29, 2008.
Speaking at Completion Board Meeting in Lagos yesterday, Chairman of the company, Vice Admiral Samuel Afolayan (rtd), explained that the move is to strategically position the company for improved performance in the years ahead.
According to him, the net proceeds of the private placement (N686. 8 million), will be utilised to boost operating assets, information technology and working capital.
Specifically, N343.4 million, representing over 50 per cent of the proceeds will be utilised for the acquisition of operating assets such as tank cleaning/waste management equipment.
Information technology and working capital will take the remaining 50 per cent.
Afolayan said that DVCF had made strategic investments in a waste management company, the Initiates Limited as well as in the solid minerals sector through Precious Mines and Minerals Processing Company (PMMPC) Limited.
Meanwhile, the Managing Director / Chief Executive of DVCF, Mr. Tony Eze, has disclosed that the company was currently finalising arrangements with refineries and the multinational oil producing companies to deploy a tank cleaning and waste management equipment valued at $4.5 million.
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He added that arrangement had also been concluded to deploy tubing and casing equipment for well engineering together with Jack-up Barges through its associate companies.
“The positioning of these transactions is at the top end with minimal competition. Theses investments are of high quality with expected high returns,” he said.
Eze explained that since its commencement of operations two years ago, the company has participated in over 80 projects in the sector either as project sponsor or manager or on venture capital platform.
“DVCF Oil Gas Plc is structured to tap into the opportunities in the oil and gas sector by responding appropriately to the financial and technical needs of its clients and deliver value to its investors. It is structured to provide the platform for operational efficiency through the fusion of finance, engineering, and technical capabilities to deliver on its set goals,” he said.
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