STA.L Regulatory News (STA)

Star Phoenix Group Ltd

("Star Phoenix" or "the Company")

17 January 2020

THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED BY THE COMPANY TO CONSTITUTE INSIDE INFORMATION AS STIPULATED UNDER THE MARKET ABUSE REGULATIONS (EU) NO. 596/2014 ("MAR"). UPON THE PUBLICATION OF THIS ANNOUNCEMENT VIA REGULATORY INFORMATION SERVICE ("RIS"), THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.

DEBT RESTRUCTURE AND LICENCE EXTENSION UPDATE

Star Phoenix (AIM: STA), an international company with oil and gas projects and oilfield service businesses in Trinidad and Indonesia, is pleased to advise that it has received required approvals from Heritage Petroleum Company Limited ("Heritage"), the state oil and gas company of Trinidad and Tobago for the sale of Range Resources Trinidad Limited ("RRTL") to LandOcean Energy Services Co., Ltd. ("LandOcean") (the "Transaction"). The Transaction will be subject to a transaction fee payable to Heritage in accordance with change of control clause of the Morne Diablo and South Quarry Farm Out Agreements. The transaction fee will be no more than 20% of the cash value of the transaction attributable to the Morne Diablo and South Quarry licences. The exact amount will be agreed with Heritage in due course. 

The Ministry of Energy and Energy Industries of Trinidad and Tobago (the "MEEI") has also confirmed to the Company that no approvals will be required from the MEEI for the sale of RRTL.

Completion of the Transaction remains subject to approval by LandOcean shareholders at a General Meeting of LandOcean (the "GM"). LandOcean has advised the Company that it is planning to hold the GM on 20 January 2020.

As previously notified, on completion of the Transaction, all outstanding debt from Star Phoenix and its subsidiaries to LandOcean and its subsidiaries (including the US$20 million convertible note) will be fully repaid by offsetting against the consideration and all underlying debt agreements will be terminated. Further details on the Transaction can be found in the Company's announcement on 3 September 2019.

The Company is also pleased to announce that Heritage has granted an extension to the Beach Marcelle Incremental Production Services Contract (the "IPSC"). The IPSC has been extended from 31 January 2020 to 31 March 2020. The Company has submitted a formal request to Heritage for a 10-year extension of the IPSC, and expects to receive a confirmation from Heritage before 31 March 2020.