KEY OBJECTIVES AND STRATEGIES
A CLEAR , CONSISTENT STRATEGY WITH PROVEN RETURNS
Spring Energy’s mission is to create value for all stakeholders through exploration, development and production of oil and gas. Its vision is to become a highly profitable E&P company founded on competence, sustainability and recognition.
Spring Energy has a clear objective of maximising and returning value to shareholders by maintaining a focus on commercial exploration and appraisal opportunities as a key driver to deliver profitable growth.
The Company’s long term strategy is to build an E&P company holding a risked balanced and attractive portfolio of licenses in the exploration, development and production phases. This will be achieved by:
- Building a diversified portfolio of quality assets in the Norwegian Continental Shelf with significant upside potential.
- Applying for attractive acreage in concession rounds as well as pro-active and selective participation in the asset transaction market.
- Executing a commercially driven exploration strategy ensuring that where possible capital and resources are allocated to the opportunities of highest potential and value.
- Actively managing the portfolio of assets and divesting of certain assets to provide capital for future funding of exploration, appraisal and development opportunities.
- Maintaining capital efficiency through active balance sheet management.
- Continuously investing in people, structure and systems to ensure safe and efficient work operations and minimise impacts on the environment.
Maintaining Capital Efficiency
Spring Energy is focused on being as capital efficient as possible. In this context, the Company intends to maintain sufficient capital on its balance sheet to sustain an active exploration programme and will only call on additional committed capital as required. In addition, the Company intends to maximise the return on equity investment through the use of its NOK 1.5 billion exploration loan facility.
At this early stage of its development, the Company is using revenue from production to cover administrative costs enabling it to direct all new equity investment to fund new exploration and asset transactions.
Where significant asset sales are made as a result of exploration and appraisal success and medium term working capital requirements have been met, the Company will give consideration to returning excess cash to shareholders.