During 2011, Dove Energy plans a private placement of circa 45% of its equity to one or two investors in return for new capital that will, in addition to Dove Energy’s own resources, be used to spur organic growth.

In summary, Dove Energy aims to grow its gross values from $42 million in 2010 to more than $ 200 million by 2015, at a reference Brent oil price of US$75 per barrel.

This will be achieved by

• Maximising recovery from Dove Energy’s existing producing fields
• Developing its existing exploration projects
• Adding new investments in proven producing basins in its target area
• Acquisition of a significant listed oil company
• Targeting additional investors that meet detailed parameters

When considering new exploration investments, developing existing projects or acquiring other oil companies, Dove Energy will aim to maximise shareholder value by:

• Seeking equity IRR at project level of a minimum of 12% per annum
• Maximising the use of debt where to do so makes good business sense
• Investing in projects with a minimum 30% to 50% probability of success
• Retaining a maximum 30% equity stake at the project level (even when the operator)
• Retaining operator status where skilled operational resources are in place.

Target Area for Investments
Dove Energy’s preferred target area for investments lies within the circle shown in Figure 2 below, which contains approximately 69 % of the world’s remaining proven oil reserves of 1,238 billion barrels (BP, 2009).

As state-controlled operators in the region will grow in influence as the rest of the world’s oil production starts to decline, proven reserves are unlikely to represent investment opportunities for smaller companies like Dove Energy. Consequently, investment focus will be on marginal and undeveloped fields in basins with proven potential. This is a very competitive market-place, and it is therefore important that Dove Energy has a presence in the region, and develops strong business relationships with host governments and partners.
 

As a further element of its strategy, Dove Energy will focus investments towards countries which have less than 25 years reserves remaining at current production levels, or where political barriers may be removed over the next 5 years Host governments in these countries will be more likely to encourage inward investment in the oil & gas sector, and to allow fair production sharing terms with foreign companies.