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Alliance News

New World Oil & Gas Still Waiting For Niel Petroleum Investment

Tue, 12th Aug 2014 17:43

LONDON (Alliance News) - New World Oil and Gas PLC Tuesday said it continues to work with Niel Petroleum SA to complete a deal in which Niel Petroleum would invest USD25 million into New World.

In September, Niel Petroleum agreed to invest USD25 million in New World in return for a 75% stake in the oil and gas explorer which operates in Belize and Denmark. Niel Petroleum planned to buy 2.19 billion shares in New World for USD25 million, while also providing a USD25 million debt facility. However, the deal was beset by delays, meaning New World was left waiting for a transfer of funds.

Earlier this year, Niel Petroleum made an initial USD4.8 million payment to New World.

In order to complete the deal, Niel Petroleum is awaiting a USD20 million payment from Kuwaiti businessman Muaaz Alfahaid, representing Al Maram Trading & Contracting Ltd, for a 20% stake in Niel, with the cash proceeds being used for the final subscription payment to New World.

Under that deal, Muaaz Alfahaid should invest in Niel Petroleum before the long-stop date of August 8.

In May, New World Oil & Gas said it expects the Alfahaid investment to be completed by the end of July.

New World Oil & Gas said due diligence is continuing on the deal and it will make a further announcement when the funding has been confirmed.

New World Oil & Gas shares closed up 1.3% at 2,677.00 pence Tuesday.

By Anthony Tshibangu; anthonytshibangu@alliancenews.com; @AnthonyAllNews

Copyright 2014 Alliance News Limited. All Rights Reserved.

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