19 Sep 2018 07:00
19 September 2018
Phoenix Global Resources plc
("Phoenix" or the "Company")
Mata Mora and Corralera - Compensation to IOG
Further to the announcements on 30 April, 5 June and 12 June 2018, Phoenix Global Resources plc (AIM: PGR; BCBA: PGR), has reached agreement with Integra Oil & Gas S.A. ("IOG") on the amount of compensation to be paid for IOG waiving its rights to participate in the Mata Mora and Corralera contracts.
In April 2018, the Company renegotiated the joint venture contracts with Gas y Petróleo del Neuquén that previously governed the Company's interest in the Mata Mora and Corralera exploration concessions. Following the renegotiation, the Company's interest in the retained areas of Mata Mora and Corralera increased from 27% to 90% and the Company assumed operatorship. As part of the renegotiation IOG agreed to waive any rights to participate in these concessions and the Company entered into discussions with IOG to agree an appropriate level of compensation for doing so.
The Company has reached agreement with IOG and has agreed to pay IOG a cash payment of US$7,000,000 in four equal instalments over a period to 5 October 2018 and a final cash payment of £11,250,000 on 5 October 2018 (in aggregate approximately US$ 21,625,000). The Company has the option to settle the final cash payment in cash or apply this amount in the satisfaction of the issue of new ordinary shares at an issue price of 45 pence per share, equivalent to 25,000,000 ordinary shares.
Ends
For further information, please contact:
Phoenix Global Resources plc | Anuj Sharma, CEO Philip Wolfe, CFO
| T: +54 11 5258 7500 T: +44 20 3912 2805
|
Stockdale Securities | Antonio Bossi Ed Thomas | T: +44 20 7601 6100 |
Panmure Gordon |
Adam James Charles Lesser |
T: +44 20 7886 2500 |
Camarco |
Billy Clegg Owen Roberts James Crothers |
T: +44 20 3757 4983 |
About Phoenix
Phoenix Global Resources is a London Stock Exchange (AIM: PGR) and Buenos Aires Stock Exchange (BCBA: PGR) listed independent Argentina focused oil and gas exploration and production company. The company has over 6.3 million licenced working interest acres in Argentina (of which over 5 million are operated), 57.2 million boe of working interest 2P reserves and average production of approximately 11,070 working interest boepd in 2017. Phoenix has significant exposure to the unconventional opportunity in Argentina through its more than 560,000 working interest acres with Vaca Muerta potential.
The Company's website is www.phoenixglobalresources.com