31 Mar 2020 07:00
31 March 2020
Phoenix Global Resources plc
("Phoenix" or the "Company")
Capital Expenditure Programs, Cost Saving Initiatives and Funding
In these difficult market conditions, Phoenix Global Resources plc (AIM: PGR; BCBA: PGR), the independent Argentine-focused upstream oil and gas exploration and production company, is reducing its capital expenditure programs and exploring other cost saving initiatives.
As part of these initiatives, the Company is in discussions with Mercuria Energy Netherlands BV ("Mercuria"), part of the Mercuria Group, to restructure the existing convertible credit facilities agreement (the "Convertible Facilities Agreement") with Mercuria. The Convertible Facilities Agreement provided for a grace period (interest and principal) from 1 January 2019 to 29 February 2020 (the "Grace Period") with the loans amortising in equal quarterly repayment instalments from 31 March 2020 until 31 December 2021, the date of maturity.
Mercuria has agreed to amend certain terms of the Convertible Facilities Agreement, including extending the Grace Period to 15 May 2020 and delaying the first repayment date under the Convertible Facilities Agreement to 15 May 2020, whilst the Company finalises the above mentioned capital expenditure reduction and cost saving programs.
Mercuria remains supportive of the Board and the development of a capital expenditure reduction and cost saving program. The Board is confident agreement will be reached.
For further information, please contact:
Phoenix Global Resources plc | Kevin Dennehy, CFO
| T: +54 11 5258 7500
|
Shore Capital Joint broker and nominated adviser
| Antonio Bossi David Coaten | T: +44 20 7408 4090 |
Panmure Gordon Joint broker |
Daniel Norman Atholl Tweedie |
T: +44 20 7886 2500 |
Camarco Financial PR |
Billy Clegg Owen Roberts James Crothers |
T: +44 20 3757 4980 |
About Phoenix
Phoenix Global Resources is an independent oil and gas exploration and production company focused on Argentina and listed on both the London Stock Exchange (AIM: PGR) and the Buenos Aires Stock Exchange (BCBA: PGR). The Company has over 1.8 million licenced working interest acres in Argentina (of which over 0.7 million are operated), 57.1 million boe of working interest 2P reserves and average working interest production of 10,249 boepd in 2018. Phoenix has significant exposure to the unconventional opportunity in Argentina through its approximately 700,000 working interest acres with Vaca Muerta and other unconventional potential.
The Company's website is www.phoenixglobalresources.com
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