Last checked at 10 Sep 2019 12:00
Thalassa Holdings Ltd
(Reuters: THAL.L, Bloomberg: THAL:LN)
("Thalassa", "THAL" or the "Company")
WGP Group Ltd: Receipt of $4.8m Balance of Earn Out
This announcement contains inside information for the purposes of Article 7 of Regulation 596/2014.
The board of Thalassa (the "Board") is pleased to announce that, following the announcements of 23 October and 19 November 2018, the Company has received the final balance of $4.8 million of the first earn out from Magseis Fairfield (formerly Fairfield Geotechnologies). The Company has now received a total of $6.0 million, being the contracted earn out following execution by Thalassa's former subsidiary, WGP Group Ltd ("WGP"), of the first data acquisition contract.
The Board remains confident that the Company will, over the next few years, receive a further earn out payment of an additional $4.0 million or $0.2346 per share/£0.1897 per share, subject to the execution of a second data acquisition contract by WGP.
The second data acquisition contract referred to relates to a new North Sea oil and gas field due to go into production in 2022. It is the Board's view, based on past experience, that WGP will be engaged to start seismic work in 2021, well ahead of the start of production, using a new triple source system recently delivered to the client. The new system has been specifically designed and commissioned to operate over both the first field, soon to begin production, and the second field due to commence production in 2022. Notwithstanding the Board's confidence that WGP will secure the second contract, the Company will not account for the future revenue until such time as it receives more specific evidence that field development is on schedule and WGP receives the relevant work order.
Duncan Soukup, Chairman of Thalassa, said: "As stated in previous announcements the Company recognised the final $4.8 million payment as a receivable. Following receipt of this sum, the Company's Book Value is of c.$29.8 million (as at 30 June 2019) and the cash balance as of today is c.$15 million. I would also like to take this opportunity to thank and congratulate the WGP team for their part in securing the data acquisition contract."
The ISIN for the Thalassa ordinary shares is VGG878801031.
Enquiries: | |
Thalassa Holdings Ltd | |
Duncan Soukup (Executive Chairman) | +33 (0)6 78 63 26 89 |
WH Ireland Limited (Financial Adviser) | +44 (0)207 220 1650 |
Chris Fielding, Managing Director, Corporate Finance
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www.thalassaholdingsltd.com
Note to Editors:
Thalassa Holdings Ltd, incorporated and registered in the BVI, is a holding company with various interests across a number of industries.