5 Mar 2018 07:00
5 March 2018
Nu-Oil and Gas plc
("Nu-Oil" or the "Company")
Update Statement from the Chairman of the Company in relation to Beaufort Securities Limited
Further to the Company's announcement of 2 March 2018, Nu-Oil hereby provides an update from its Executive Chairman, Alan Minty as follows:
"The announcement released by the Financial Conduct Authority on 2 March 2018 in relation to the administration of the Company's then broker, Beaufort Securities Limited ("Beaufort") was a surprise to the Company, as I am sure it was to all Beaufort's clients. We had numerous previous successful fund raises using Beaufort as the brokers and thus their demise was unpredictable and unexpected. Nu-Oil's approach has been to focus not on the reasons for Beaufort's problems but on how to mitigate the effects on our Company and its shareholders which includes maintaining our efforts on developing and negotiating opportunities in marginal field development.
Thus, our immediate priority was to ensure the Company had a broker which is able to represent us, in accordance with AIM rules. The Company quickly appointed Strand Hanson Limited as broker on an interim basis in addition to its primary role as our Financial and Nominated Adviser. We are actively seeking to appoint a permanent broker, which we hope to announce in short order.
The next and obvious priority has been to understand the implications of the administration on the placing that the Company announced on 1 March 2018, which had been arranged by Beaufort in their capacity as the Company's broker at that time. The Company's preference is to complete the agreed fund raise but we will require guarantees that the transaction can be concluded without any exposure to the Company and this is what we are actively seeking. This is a priority and any alternative action we take must be predicated on knowing whether the fundraise can be completed; we do not intend to take precipitate action which may have unforeseen consequences and I would emphasise that the Company controls the stock which was to be allotted for the fund raise.
Since Friday morning, the Company has been working with its advisers to obtain the clarity required to determine the most appropriate course of action. We are unable to announce whether the placing will continue at this time but we expect to know soon and will update the market accordingly.
Our main priority is the preservation of shareholder value and, to that extent, the 'fundamentals' of the business and its opportunities are unaffected by the delay in concluding the placing; neither the business model nor ongoing activities are likely to be impacted in any way which cannot be managed.
We remain confident about the exciting future the Company has based upon the potential of the marginal field strategy. I would like to thank shareholders for their patience and continued support, and they can be confident we will update the market as soon as we are able. And I trust that it goes without saying that shareholders know we will ensure this temporary issue will not distract us from our objective to conclude negotiations on our first marginal field project."
Enquiries
Nu-Oil and Gas plc | |
Simon Bygrave Investor Relations & Communications | Tel: +44 (0)161 817 7460 |
Nigel Burton Chief Executive Officer | Tel: +44 (0)7785 234447 |
Strand Hanson Limited Rory Murphy/Ritchie Balmer/Jack Botros | Tel: +44 (0)20 7409 3494 |
Note to Editors
The Company
Nu-Oil is a development and production company, which utilises appropriate development approaches to create value from undeveloped and mature oil and gas assets. Nu-Oil is building a portfolio of development and production assets with an emphasis on stranded and marginal discoveries which can be unlocked using cost-effective development solutions.
Nu-Oil targets thoroughly appraised fields located in basins with stable political and regulatory regimes. By doing so Nu-Oil minimises exposure to the risks associated with frontier plays, particularly exploration and appraisal risks.
Marginal Field Development Company Ltd. ("MFDevCo"), in which both Nu-Oil and RMRI Ltd., a company controlled by Alan Minty, hold a 50% interest, has developed offshore production solutions that improve the economics of oil projects by significantly lowering development costs compared to conventional approaches. To implement its solutions, MFDevCo has established the Marginal Field Delivery Consortium ("the Consortium"), a group of leading global engineering specialists who provide the skills and capability required to deliver projects. Nu-Oil will utilise MFDevCo solutions and the capability within the Consortium to develop and deliver its projects.
www.nu-oilandgas.com