RE: Re AOGL........3 Sep 2019 17:09
When ADL was CEB and AOGL was NCT, NCT helped set up the deal for CEB to come back as ADL. As part of that deal, NCT put $100k into CEB and the right to participate in any Indo oil & gas deals that ADL did for five years. The deal is 12.5% on a non-promoted basis ie., at the same cost as ADL.
So at the moment ADL has not done an oil & gas deal it is providing services for which it is being repaid from the extra revenue generated as a result of the services provided.
If and when ADL converts the outstanding liability into a participation interest then AOGL will have the right to participate. I don't expect ADL to make a decision before the end of September and maybe not till October. Both companies are fully aware of the Right to Participate, I have discussed it with both of them fairly recently.
https://www.proactiveinvestors.co.uk/companies/news/125346/northcote-energy-confirms-partnership-with-andalas-in-indonesia-125346.html
https://www.proactiveinvestors.co.uk/LON:ADL/Andalas-Energy-and-Power-Plc/rns/PRNRNS_201604271158PR_NEWS_UKDISCLO_0118
Participation Agreement with Northcote
On 30 April 2015, the Company entered into a Participation Agreement with Northcote in consideration for Northcote providing services and relationships in connection with procuring financing for the Company to undertake one or more projects in Indonesia. Under the terms of the Participation Agreement, Northcote is entitled to participate directly with the Company in any joint venture, partnership, concession, profit sharing contract, working interest in any well or other similar agreement, introduced by any party, relating to the exploration, development and production of hydrocarbons in Indonesia initiated prior to 30 April 2020. Northcote is entitled to a paying participation at a level equal to 12.5 per cent. of the interest of the Company (prior to Northcote’s election to participate) either directly or through any partnership or joint venture agreement entered into by the Company. Northcote has notified the Company of its election to participate in the Tuba Obi East concession. Further detail regarding the Participation Agreement is set out in the admission document.
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