Last checked at 23 Nov 2012 08:58
23 November 2012
Independent Resources plc
("IRG" or "the Company")
Rivara Project Company
Independent Resources plc (IRG:L) announces changes to the ownership structure of the joint venture company holding the Company's Rivara underground gas storage project.
Effective today, the shareholders entered into a mutually satisfactory settlement agreement whereby ERG SpA, the minority shareholder of the joint venture company exited the gas storage project and transferred its interest to Independent Gas Management srl (IGM). As a result Rivara Gas Storage srl is now 100% owned by IGM, in turn a wholly-owned subsidiary of IRG, and has changed its name into Rivara Gas Storage srl.
Pursuant to this transaction, ERG Spa has contributed additional capital into Rivara Gas Storage srl in the sum of 1.4 million euros and forgiven 357,000 euros in loans. In return, ERG Spa's obligation to contribute further capital in future has been cancelled. The cash balance at this subsidiary is now approximately 1.8 million euros.
This transaction extinguishes a deferred and contingent net receivable of £2.8 million, which will result in a debit to reserves in the 2013 accounts of £1.5 million. The holding value of the Rivara asset at the group level is £5.3 million as at 30.09.2012.
Grayson Nash, Executive Chairman, commented "This agreement was amicable and consistent with each party's plans to concentrate on its own affairs. The significant additional group liquidity will assist with our exciting plans for expanding our E&P activities going forward".
For further information, please visit www.ir-plc.com or contact: | ||
Grayson Nash, Executive Chairman | Independent Resources plc | +39 06 4549 0720 |
Jonathan Wright / David Porter (Nominated Adviser) |
Seymour Pierce Limited |
020 7107 8000 |
Richard Redmayne/David Banks (Corporate Broking) Phil Davies / James Wood (Corporate Broking) | Charles Stanley Securities | 020 7149 6074 |
Background details follow:
IRG holds extensive unconventional oil exploration interests in Tunisia, unconventional gas exploration interests covering the entire Ribolla basin in Italy, and the strategically-positioned Rivara gas storage project in the Po Valley, in addition to other emerging interests in CO2 sequestration.
Following the recent tragic events involving the Emilia earthquake in May, on which the Company commented in June, IRG is not actively pursuing the Rivara project at the moment. Necessary permits have been withheld and the Company has since sought legal redress in administrative court. The expected very significant delays at Rivara means the Company is now focusing on expanding its Mediterranean E&P portfolio.