Management Resource Solutions Regulatory News (MRS)

6 Jun 2005 07:00

Melrose Resources PLC06 June 2005 FOR IMMEDIATE RELEASE 6 JUNE 2005 Melrose Resources plc Sale of interest in Renova Energy plc Melrose Resources plc, the oil and gas exploration and production company withinterests in Bulgaria, Egypt, the USA and France, today announces that it hasagreed to dispose of its 19% interest in Renova Energy plc ("Renova") forapproximately £2.1 million. Renova is the parent company of Wyoming Ethanol LLCwhich was sold by Melrose to Renova in a management buy-out in 2002. Renova has today announced its intention to raise £7.0 million (before expenses)by way of a placing of new ordinary shares and to seek admission to AIM("Admission"). In conjunction with this placing of new ordinary shares,Melrose's 19% interest in the ordinary share capital of Renova is also beingplaced. The disposal by Melrose is conditional on Admission which is expected totake place on 10 June 2005. Following Admission, Renova has also agreed to repayin full the balance of approximately US$3.5 million outstanding on the Loan Note2002 - 2010 which was issued by Wyoming Ethanol LLC at the time of themanagement buy-out. The chairman of Renova is Chris Thomas, a director of Melrose. Mr Thomas willremain on the Board of Melrose in an executive capacity and will devote 60 percent of his time to Melrose and 40 per cent of his time to Renova. Commenting on this, Robert Adair, Chairman, said: "The flotation of Renova has provided Melrose with the opportunity to realiseits retained investment in this business following the management buy-out in2002. Melrose will receive £4.0 million from the sale of this interest and therepayment of the loan note and will book a profit of approximately £2.0 millionon the transaction. Melrose is planning an exciting drilling programme in thesecond half of the year and the funds received will provide additional workingcapital for the Group." For further information please contact Melrose Resources plcRobert Adair 0184 553 7037David Curry, Chief Executive 0131 221 3360Munro Sutherland, Finance Director 0131 221 3360 Buchanan Communications LimitedTim Thompson/Charlie Howard 0207 466 5000 or visit www.melroseresources.com This information is provided by RNS The company news service from the London Stock Exchange