2 Sep 2016 16:25
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.
2 September 2016
CIRCLE OIL PLC
("Circle" or the "Company")
Financial Update
Further to the announcement of 5 August 2016, Circle Oil plc (AIM:COP) the international oil and gas exploration, development and production company, is pleased to announce that International Finance Corporation ("IFC") has agreed to further extend the suspension of the December 2015 redetermination and suspend the June 2016 redetermination and any repayments due under its Reserve Based Lending ("RBL") facility until 30 September 2016. In addition, IFC has continued to indicate its willingness to consider further waivers as may be required to continue the Strategic Review process based on circumstances applying at the time of any application.
In addition to the waiver of the redetermination, in light of the current financial position of the Company, the IFC have again agreed to the deferral of the interest payment due on 29 July 2016 until 30 September 2016. As with the previous interest deferral, a condition of this deferral is that the interest will be repaid if the Company receives significantly better than anticipated amounts from the Egyptian General Petroleum Corporation ("EGPC").
The Company's financial position remains under significant pressure and the position with regards to US dollar payments from EGPC is unchanged from the announcement of 5 August 2016. As a result of the deferral of the IFC interest payment, the Company is in a position to discharge its financial obligations during the period of the waiver and will continue to explore options for additional funding during this period in order to be able to discharge its financial obligations thereafter.
The Strategic Review process remains ongoing and further updates will be provided as appropriate.
For further information contact:
Circle Oil plc (+44 20 7182 4913)
Mitch Flegg, CEO
Investec (+44 20 7597 5970)
Chris Sim
George Price
James Rudd
Jonathan Wynn
Murray (+353 1 498 0300)
Joe Heron
Pat Walsh