Circle Oil PLC Strategic Review Update (8072Y)
May 20 2016 - 2:00AM
UK Regulatory
TIDMCOP
RNS Number : 8072Y
Circle Oil PLC
20 May 2016
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART
IN, INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A
VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT
JURISDICTION.
20 May 2016
CIRCLE OIL PLC
("Circle" or the "Company")
Strategic Review Update
Further to the announcement of 15 March 2016, Circle Oil plc
(AIM: COP) the international oil and gas exploration, development
and production company, provides an update on the Strategic Review
Process.
To date the Company has received a number of indicative
proposals, which are in the process of being evaluated, and is
working to conclude the Strategic Review Process as expediently as
possible.
After taking into account the Company's $77.5 million
outstanding debt position (which comprises the $20.0 million
convertible loan held by KGL Investment Company and the $57.5
million reserve base lending facility with International Finance
Corporation which is fully drawn) and based on the indicative
proposals received to date, it is likely that there will be little
or no value attributed to Circle Oil plc equity holders.
The management continue to consider all options to maximise
value for shareholders and stakeholders. As previously announced,
the scope of the options being considered under the Strategic
Review include, but are not limited to, a debt restructuring, a
sale of one or more of the Company's existing assets, a corporate
transaction such as a merger with a third party, the sale of the
entire issued, and to be issued, share capital of the Company and
the raising of capital in the form of a subscription for new
ordinary shares in the Company by one or more third parties.
A further update will be given in due course.
For further information contact:
Circle Oil Plc (+44 20 7182 4913)
Mitch Flegg, CEO
Investec (+44 20 7597 5970)
Chris Sim
George Price
James Rudd
Jonathan Wynn
Murray (+353 1 498 0300)
Joe Heron
Pat Walsh
Notes to Editors
Circle Oil plc (AIM: COP) is an international oil & gas
exploration, development and production company holding a portfolio
of assets in Morocco, Tunisia, and Egypt with a combination of
low-risk, near-term production, and significant upside exploration
potential. The Company's shares were admitted to trading on AIM in
October 2004.The Company has assets in the Rharb Basin, Morocco;
the Ras Marmour Permit in southern Tunisia; the Beni Khalled permit
in northern Tunisia, the Mahdia Permit offshore Tunisia and the NW
Gemsa permit in Zeit Bay area of Egypt.
Circle's strategy is to locate and secure additional licences in
prospective hydrocarbon provinces and, through targeted investment
programmes, monetise the value in those assets for the benefit of
shareholders. This could be achieved through farm-outs to selected
partners who would then invest in and continue the development of
the asset into production, or Circle may opt to use its own
expertise to appraise reserves and bring assets into production,
generating sustained cash flow for further investment.
Further information on Circle is available on its website at
www.circleoil.net.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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