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(Alliance News) - Petrel Resources PLC on Friday said it has not been able to finalise the second tranche of shares in its Tamraz group agreement as a result of "changed circumstances" due to Covid-19 and a volatile oil price.
Shares in Petrel were down 15% at 5.71 pence each in London in afternoon trading.
Petrel also said the Tamraz group - consisting of Roger Tamraz, Michel Fayad, and Said Mehraik - will maintain its current 32.1 million Petrel shares.
The high court injunction over the 32.1 million shares is to remain in place until "outstanding matters" have been resolved to the Dublin High Court's satisfaction.
In January, Petrel said its application to the High Court in Dublin for a broader interlocutory injunction against trading in its locked-in shares was successful and was not contested. This followed a previous successful application to the High Court in Dublin for an interim injunction over locked in shares.
The company had previously said it hadn't received payment for the second tranche of shares issued to the Tamraz investor group, as well as noting a potential share lock-in violation. The Tamraz group consists of private equity investors, friends and business acquaintances of Non-Executive Directors Tamraz and Fayad.
On Friday, Petrel said it wasn't able to proceed in finalising the second 64.0 million tranche of shares as a result of "the changed circumstances, taking into account the state of markets generally in the light of Covid-19, as well as oil price volatility".
Petrel said the Tamraz group is still working on positive investment proposals and deals which might be presented to Petrel.
Petrel stated that "Should any of these proceed, it is envisaged that payment will be in the form of Petrel shares".
In Ghana, Petrel said it is ready to commence the Tano 2A work progreamme once the petroleum agreement has been ratified and all necessary funding obtained. Petrel said that in spite of the lower oil prices seen of late, Tano is still "an industry favourite".
The company further noted: "The passing of insolvency legislation that may assist in the recovery of all of the original Tano 2A coordinates."
According to Petrel: "There now appears to be a legal structure enabling the authorities to recover 529 kilometres squared of the original acreage Tano 2A acreage over which Petrel holds, with partners, a petroleum agreement, and which is now awaiting ratification."
In the Irish Atlantic, Petrel retains a 10% working interest in Frontier Exploration Licence 11/18, located in the Porcupine Basin, alongside partner Woodside.
However, as a result of "legislative uncertainty since 2017", Petrel has halted farm-out talks with a "gas super-major". As such, its dropped its 100% owned Frontier Exploration Licence 3/14.
By Anna Farley; annafarley@alliancenews.com
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