International Petroleum Corporation ("IPC" or the "Corporation") (TSX, Nasdaq First North: IPCO) announced today that an aggregate of 25,540,302 common shares of IPC (the "Deposited Shares") were tendered and will be purchased by IPC's wholly-owned subsidiary, Lundin Petroleum BV ("LPBV"), in connection with the offer announced on 24 April 2017 (the "Offer"). The Deposited Shares include 22,805,892 common shares of IPC held by Statoil ASA ("Statoil") following the spin-off of all common shares of IPC ("Common Shares") by Lundin Petroleum AB. The offered consideration by LPBV in the Offer is C$4.77 per Deposited Share for Common Shares held through The Canadian Depository for Securities Ltd. ("CDS") and a corresponding amount in Swedish Krona to be determined shortly, for Common Shares held through Euroclear Sweden AB ("Euroclear"). The corresponding amount in Swedish Krona to C$4.77 will be determined on or around 5 June 2017 at the available market rate for Pareto Securities AB, the Swedish issuing agent. Should any tendering shareholders with Common Shares held through Euroclear have any questions regarding the payment through Euroclear, they may contact Pareto Securities by phone +46 8 402 51 40 or e-mail issueservice.se@paretosec.com. The estimated aggregate consideration to be paid by LPBV for the Deposited Shares is expected to be approximately C$121.8 million, or approximately US$90.2 million, which is less than the US$100 million limit of the Offer and therefore there will be no pro rata reduction of the Common Shares tendered in the Offer. LPBV is expected to pay for Deposited Shares held through CDS on or around 2 June 2017 and, promptly following such date, payment will be made for Deposited Shares held through Euroclear. In order to finance the Offer, LPBV will draw under the reserve-based lending facility entered into with a syndicate of banks led by BNP Paribas, Australia and New Zealand Banking Group (ANZ), BMO Capital Markets and ScotiaBank Europe. Mike Nicholson, CEO of IPC, comments: "I am very pleased that the majority of our shareholders have decided to retain their investment in IPC, recognising that this is a great platform to build a new independent upstream company at an optimal point in the cycle." Following the purchase of the Deposited Shares by LPBV, the total number of issued and outstanding Common Shares, excluding the Deposited Shares held by LPBV, a subsidiary of the Corporation, is expected to be 87,921,846. Nemesia S.à.r.l., an investment company wholly owned by a Lundin family trust, is expected at that time to hold approximately 33% of the total number of Common Shares, excluding the Deposited Shares held by LPBV. The voting rights attached to the Deposited Shares to be held by LPBV will either not be exercised or such Common Shares will be cancelled as a result of a post-Offer internal reorganization.
International Petroleum Corp. (IPC) is a new international oil and gas exploration and production company with a high quality portfolio of assets located in Europe and South East Asia, providing a solid foundation for organic and inorganic growth. IPC is a member of the Lundin Group of Companies. IPC is incorporated in Canada and IPC's shares are listed on the Toronto Stock Exchange (TSX) and the Nasdaq First North Exchange (Stockholm) under the symbol "IPCO". Pareto Securities AB is the Corporation's Certified Adviser on Nasdaq First North. For further information, please contact: Rebecca Gordon VP Corporate Planning and Investor Relations rebecca.gordon@international-petroleum.com Tel: +41 22 595 10 50 or Robert Eriksson Media Manager reriksson@rive6.ch Tel: +46 701 11 26 15 This information is information that International Petroleum Corporation is required to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the contact persons set out above, at 08.30 CEST on 24 May 2017. Forward-Looking Statements This press release may contain statements and information which constitute "forward-looking information" (within the meaning of applicable securities legislation). Such statements and information (together, "forward-looking statements") relate to future events, including the Company's future performance, business prospects or opportunities. Actual results may differ materially from those expressed or implied by forward-looking statements. Forward-looking statements are expressly qualified by this cautionary statement. Forward-looking statements speak only as of the date of this press release, unless otherwise indicated. IPC does not intend, and does not assume any obligation, to update these forward-looking statements, except as required by applicable laws. All statements other than statements of historical fact may be forward-looking statements. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, forecasts, guidance, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "forecast", "predict", "potential", "targeting", "intend", "could", "might", "should", "believe" and similar expressions) are not statements of historical fact and may be "forward-looking statements". Forward-looking statements include, but are not limited to, the number of Deposited Shares to be purchased by LPBV, the payment date for the Deposited Shares, statements with respect to estimates of reserves, future production levels, future capital expenditures and their allocation to exploration and development activities, future drilling and other exploration and development activities. Ultimate recovery of reserves or resources is based on forecasts of future results, estimates of amounts not yet determinable and assumptions of management. Reserve estimates and estimates of future net revenue are effective as of 31 December 2016 and were prepared by IPC in accordance with standards prescribed by National Instrument 51-101 - Standards of Disclosure for Oil and Gas Activities of the Canadian Securities Administrators and audited by ERC Equipoise Ltd., an independent qualified reserves auditor. BOEs may be misleading, particularly if used in isolation. A BOE conversion ratio of 6 Mcf per 1 Bbl is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead.
