Repayment of debts23 Mar 2022 07:23
Creditor Restructuring
The majority of payments due under the previously announced creditor settlement agreements were paid as required during February 2022. A small number are due for payment in March 2022, and which are all expected to be made on time, in line with the description of creditor settlements as set out in the Notice of Extraordinary General Meeting sent to shareholders on 9 February 2022.
As a result of these payments, the Company will have substantially eliminated all residual debts and payables associated with the drilling of the Perseverance-1 well. In addition, the non-recourse liabilities of the Company's various subsidiaries in Trinidad and Tobago have been reduced to less than US$2.5 million, an amount considerably lower than the approximate US$8 million inherited as part of the acquisition of Columbus Energy Resources PLC in August 2020. The Company expects that these remaining subsidiary-level liabilities will be gradually discharged in the ordinary course of business over the coming 12-18 months using operations derived income.
The Company therefore expects to commence Q2 2022 debt and liability free at the corporate level, with subsidiary company liabilities significantly reduced and managed in the ordinary course of business. The Company's cash reserves will be applied toward general working capital and supporting a work programme through 2022 and 2023 which is fo