rns31 Oct 2013 08:03
· Completion of A$14.1 million fundraising
· Appointment of Andrew Rose, experienced Chief Financial Officer
· Six month extension granted to Initial Exploration Period under Petroleum Agreement in respect of Offshore Accra Contract Area, Ghana
· Reduction to final settlement agreed with rig owner
· Memorandum Of Understanding signed with Côte d'Ivoire Government regarding new Production Sharing Contract for Block CI-202
· Ongoing preparation for development of Gazelle gas field
A message from the Managing Director - Rob Shepherd
The positive momentum that started in the second Quarter continued throughout the third period (the "Period") with a number of key developments, specifically:
· Completion of the previously announced A$14.1 million fundraising following approval of the placing (the "Placing") by the required majority of existing shareholders at the General Meeting held on 7 August; and
· The signing of a Memorandum of Understanding ("MOU"), together with Vitol E&P, with the Côte d'Ivoire Ministry of Oil and Energy to replace the existing Production Sharing Contract ("PSC") with a new PSC on amended terms.
With regards to the Placing, we are most grateful both to the investors that elected to participate and of course to our existing shareholders who voted to support the issue of new shares: of those that voted, over 90% voted in favour of the relevant resolutions. The Board took this as a positive vote of support in respect of what they are seeking to achieve in stabilising the Company.
Following the Placing, the signing of the MOU was a particularly significant step, as it alleviated the main residual concern of the Board, namely that the Company would be unable to meet its remaining exploration commitments under the current period of the existing PSC. Whilst much work remains to be done in negotiating the definitive agreements, as I said at the time of the announcement, the MOU sets out a clear path for resolution of the remaining uncertainties in a satisfactory manner. In that regard, we are very grateful to the Government of Côte d'Ivoire for the constructive way in which they have approached negotiations, recognising both the significant amount of funds invested to-date as well as the robust Field Development Plan that has now been submitted in relation to the development of the Gazelle gas field.
With respect to the development of Gazelle, we have been working extremely closely with our counterparts at Vitol E&P ("Vitol") and, whilst completion of the previously announced transaction remains subject to a number of conditions, including resolution of the PSC issues described above, both companies are working very positively together, which bodes well for the future.
During the Period, we were also advis
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