Welltec® announces closing of DKK 257 million private placement with PFA

Welltec International ApS (Welltec®) has completed a private placement with PFA, Denmark’s largest pensions fund with more than DKK 350 billion under management and administering the pensions of 9,300 corporate and 500,000 individual customers.

Gross proceeds from the private placement amount to DKK 257 million, securing PFA a minor interest in Welltec®. As a result hereof, the shareholders of Welltec International ApS today resolved at an extraordinary general assembly, to increase the share capital of Welltec International ApS with DKK 150,000. The implied valuation of Welltec® cannot be derived from the published information including the number of newly issued shares as details concerning the company’s existing warrant program are not disclosed.

The proceeds strengthen Welltec’s capital structure and can be used for further development of the company’s business within robotic intervention services and completion solutions to the oil and gas industry.

“We are pleased to welcome PFA as an investor in Welltec®, and we look forward to continue our journey of growth with this high-caliber investor onboard. During the last five years, we have doubled our headcount and transformed Welltec® into a truly global company – and we continue our efforts to grow the business in a controlled and professional manner,” says Jørgen Hallundbæk, CEO of Welltec®.

Welltec® has recorded annual double-digit revenue growth for 3 consecutive years and maintained EBITDA margins of 47-53%. The company’s DKK 1.9-2.1 billion revenue guidance for 2013 represents an expected annual growth rate of 12-24%, and its EBITDA margin is expected to be at or around recent historical levels.

“Welltec® is a high-quality company and an exciting investment case with strong growth prospects within the company’s advanced robotic well intervention services and its promising well completions solutions. The company’s pioneering technology has revolutionized its industry, and Welltec® continues to outgrow competition. The recent induction into the Hall of Fame for Danish Exports is another testament to the quality of Welltec’s services and its ability to transform technological expertise into profitable business,” says Jesper Langmack, Managing Director at PFA Asset Management.

For further information:
Jørgen Hallundbæk, Chief Executive Officer, Welltec®
Søren Jørgensen, Chairman of the Board of Directors, Welltec®
Jesper Langmack, Managing Director, PFA Asset Management

Please contact:
Morten Græsbøll Ottesen, Investor Relations Director, Welltec®,
tel.: +45 22 33 73 08

Company Profile
Welltec® is a leading provider of robotic intervention services and completion solutions to the oil and gas industry. Our pioneering technology enables operators to optimize their use of oil and gas resources throughout the life-cycle of their wells. We address the factors that maximize value creation, continuously innovating to reduce well construction time, speed up access to the hydrocarbons and reduce the capital expenditure burden of more conventional methods. The effect is one of maximizing oil and gas production while minimizing operating down-time.

This is the essence of Welltec’s philosophy; to challenge existing practices and think laterally in order to develop products and services which increase oil and gas recovery while improving the economic, environmental and safety aspects of our industry. In practice we develop, test and manufacture state- of-the- art technology to enhance the recovery and production rates for our clients, thereby improving their profitability through a longer term revenue stream.

Our intervention solutions allow our customers, some of the world’s largest national and independent oil companies, to pursue fields that would not otherwise be economically viable. Our lightweight technology delivers more efficient, more effective, more productive and safer interventions in environments that are becoming increasingly complex, remote and hostile.

In an industry characterized by maturing fields and increasing depletion rates, the premium attached to technology which aids in reversing these trends is continuing to gain momentum. Our value proposition is compelling; our technology enables clients to unlock more production from their assets and to address reservoir complexities and uncertainties with a greater number of options.

Important Notices
Any statement in this announcement that is not a historical fact is a “forward-looking statement”. Such statements may include opinions and expectations regarding Welltec® and its future business, management’s confidence and strategies as well as details of management’s expectations of new and existing programs, technology and market conditions. These forward-looking statements rely on assumptions concerning future events that are subject to a number of risks and uncertainties, many of which are outside Welltec’s control, and which could cause Welltec’s actual results to be materially different from these forward-looking statements. While Welltec® believes that its assumptions concerning future events are reasonable, there are inherent difficulties in predicting certain important factors that could impact the future performance or results of Welltec’s business. Accordingly, such statements should not be regarded as representations as to whether such anticipated events will occur nor that expected objectives will be achieved. Welltec® expressly disclaims any intention or obligation to revise or update any forward-looking statements, whether as a result of new information, future events, or otherwise.