TIDMWBN

RNS Number : 4904K

Woburn Energy PLC

22 August 2012

For immediate release

22 August 2012

Woburn Energy Plc

("Woburn" or the "Company")

Disposal payment timetable

On 21 June 2012 the Company's 51 per cent. owned subsidiary, LQRC, completed the disposal of its 50 per cent. working interest in the Las Quinchas Association Contract. Under the terms of the Assignment Agreement, the consideration is to be paid to LQRC in nine instalments. The original payment date for each instalment was to be determined by the date on which the relevant Colombian authorities approve the assignment of LQRC's interest in the Las Quinchas Association Contract to the Purchaser or, if earlier, the date which is three (3) months following the sixtieth (60th) day after formal submission to the Colombian authorities requesting assignment of the Las Quinchas Association Contract to the Purchaser.

The Board is pleased to announce that LQRC has now agreed the relevant payment dates for each instalment with the Purchaser and accordingly, the instalment payments will be made as follows:

 
 Table 1: Payments due to LQRC 
                                                             Column A:            Column B: 
 Instalment    Instalment payment date                  Gross proceeds         Net proceeds 
                                                                   US$                  US$ 
------------  -----------------------------------  -------------------  ------------------- 
 First         Paid                                         1,777,778             2,150,000 
 Second        On or before 28 December 2012                2,666,667               255,147 
 Third         On or before 2 April 2013                    2,666,667             6,899,600 
 Fourth        On or before 2 July 2013                     2,666,667               773,210 
 Fifth         On or before 2 October 2013                  2,666,667                     - 
               Within 3 months of payment of the 
 Sixth          Fifth Instalment                               888,889                    - 
               Within 6 months of payment of the 
 Seventh        Fifth Instalment                               888,889                    - 
               Within 9 months of payment of the 
 Eighth         Fifth Instalment                               888,889                    - 
               Within 12 months of payment of 
 Ninth          the Fifth Instalment                           888,889                    - 
 
                                                            16,000,000           10,077,957

Column "A" above sets out the gross proceeds due to LQRC directly from the Purchaser pursuant to the Assignment Agreement. Column "B" above sets out the net proceeds which the Board expects LQRC to receive, after adjustment for advances received from, and thereafter repayable to, PSE, together with settlement of all billings and interest payments owed to PSE.

The total net proceeds to LQRC therefore amount, as previously announced, in aggregate to US$10.1 million, of which Woburn's net share in respect of its 51 per cent. interest in LQRC amounts to US$5.14 million and which will be substantially received on or before 2 April 2013.

For further information, please contact:

 
 Woburn Energy Plc                     Tel: +44 (0) 20 7380 
                                        4600 
 Kamran Ahmed                          www.woburnenergy.com 
 Beaumont Cornish Limited (Nominated   Tel: +44 (0)20 7628 3396 
  Adviser) 
 Michael Cornish

DEFINITIONS

 
 "Assignment Agreement"      the conditional assignment agreement executed 
                              31 May 2012 and entered into between LQRC 
                              and the Purchaser; 
 "Las Quinchas Association   the association contract between Empresa 
  Contract"                   Colombiana De Petroleos (Ecopetrol) and 
                              Clavijo Avila Geopozos & Company S.A. dated 
                              29 January 1996 (as amended); 
 "LQRC"                      Las Quinchas Resource Corporation, a company 
                              incorporated under the laws of Barbados 
                              (West Indies) with registered number 16000063 
                              whose registered office is located at c/o 
                              Oceanic Managers (Barbados) Incorporated, 
                              Braemar Court, Deighton Road, St. Michael, 
                              BB14017, Barbados; 
 "PSE"                       Pacific Stratus Energy Colombia Corp, a 
                              company organised under the laws of Panama, 
                              with a branch established in Colombia, 
                              a wholly-owned subsidiary of Pacific Rubiales 
                              Energy Corp; 
 "Purchaser"                 the purchaser of the beneficial interests 
                              of LQRC under the Las Quinchas Association 
                              Contract pursuant to the Assignment Agreement, 
                              being Cloister Blue Corporation, a company 
                              organised and existing under the laws of 
                              the British Virgin Islands with registered 
                              number 1054513;

ENDS

This information is provided by RNS

The company news service from the London Stock Exchange

END

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