Last checked at 26 Jun 2015 07:00
Red Rock Resources Plc
("Red Rock" or the "Company")
Option to Invest in Elephant Oil Limited
26 June 2015
Option Agreement
Red Rock Resources plc is pleased to announce it has entered into an option agreement ("the Option") with Elephant Oil Limited ("Elephant"), an oil and gas exploration company focused on West Africa.
The Option if exercised requires Red Rock to subscribe for 1,086,956 new ordinary shares in Elephant, at a price per share of 25.3 pence, for an aggregate consideration of £275,000. Further the Option if executed includes the right to invest an additional £412,500 in to Elephant within a six month period, also at 25.3 pence per share. The Option is exercisable within seven days, unless extended by Elephant. A further announcement will be made at that time.
Elephant Oil
Elephant is a privately held independent oil exploration company holding a 100% interest in the production-sharing contract ("PSC") on Block B, onshore Benin, on the prolific West Africa Transform Margin. The block covers 4,500 km2, or approximately two-thirds of the coastal basin, and is one of only two onshore blocks to have been made available by the government of Benin.
Elephant has acquired a high-resolution aero gravity gradiometry survey, covering the entirety of Block B, performed by CGG (Fugro). Fieldwork and geophysical interpretation have also been completed, resulting in the identification of subsurface leads. Preparations are underway for a new 2D seismic acquisition programme that will be used to define a drillable prospect, for the first exploration well onshore in Benin.
The company recently began the Environmental Impact Assessment ("EIA") covering the area of the forthcoming seismic survey. The EIA is a prerequisite to permitting the new seismic acquisition programme, planned in 2016.
Elephant's strategy is to build a portfolio of low-risk and low-cost early-stage exploration assets onshore in West Africa. The company is in advanced negotiations to acquire licence interests in other countries, thereby expanding its portfolio.
The last audited accounts of Elephant Oil were to 31 January 2014, and show total assets of £1,618,007 and total comprehensive loss for the year of £46,668.
Andrew Bell, Chairman, states: "Having finished the first stage of change at Red Rock by repayment of debt, by disposals, and by other actions, this begins the second stage. We have with our Ivory Coast investment focussed on the emerging and neglected potential of some countries in Francophone West Africa, and this Option to invest in Elephant potentially allies us with a like-minded company which has worked diligently to establish an early presence. Elephant has acquired, and is working on the acquisition of, onshore oil projects in West Africa.
An investment in Elephant would enable the experienced team at Elephant, led by Matt Lofgran, Gavin Burnell, and Martin Keeley to make further progress, and create synergies and future opportunities for Red Rock."
For further information, please contact:
Andrew Bell 0207 747 9990 or 0776 647 4849 Chairman Red Rock Resources Plc
Roland Cornish/ Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 0129 351 7744 Broker Dowgate Capital Stockbrokers Ltd.
Christian Pickel 0203 128 8817 Media Relations MHP Communications
The information in this announcement relating to Elephant Oil Limited has been reviewed and approved by Martin Keeley, BSc, PhD, FGS who has thirty five years of geological experience and sufficient experience which is relevant to the region, the style of mineralisation under consideration, and to the activities being undertaken.