Primorus Investments PLC Disposal of Interest in Horse Hill (2236Y)
20 Agosto 2018 - 01:00AM
UK Regulatory
TIDMPRIM
RNS Number : 2236Y
Primorus Investments PLC
20 August 2018
Primorus Investments plc
("Primorus" or the "Company")
Sale of 5% interest in HHDL to UKOG PLC for GBP1,375,000 in
Shares and Cash
Primorus Investments plc (AIM: PRIM, NEX: PRIM) is pleased to
report that the Company has entered into a conditional sale and
purchase agreement ("SPA") to dispose of its 5% interest in Horse
Hill Developments Limited ("HHDL") to UK Oil and Gas plc ("UKOG"),
a company admitted to trading on AIM. UKOG already holds a 49.9%
interest in HHDL which in turn holds a 65% interest in two onshore
UK petroleum exploration licences, PEDL 137 and PEDL 246, which
contain the Horse Hill oil discovery.
UKOG has agreed to pay Primorus an aggregate consideration of
GBP1,375,000, made up of GBP375,000 in cash and the balance of
GBP1,000,000 by way of 57,142,857 UKOG shares priced at 1.75P being
the bid price at the close of trade on 16 August. The SPA is
conditional on the written consent of each of the members of HHDL
to the sale of shares as set out in HHDL's articles of
association.
Once the disposal is completed, Primorus' will no longer hold a
direct interest in HHDL but will retain exposure to the project via
share ownership in UKOG and Solo Oil plc.
Alastair Clayton, executive director of Primorus, commented "We
are delighted to have undertaken today's conditional disposal. This
transaction is a fantastic result for our shareholders as it vastly
improves the liquidity of our investment portfolio whilst we retain
upside exposure through ownership of a large number of shares in
UKOG.
We decided to accept UKOG's proposal in light of the excellent
initial results for the Portland released to market on 18 July and
the upcoming Kimmeridge long-term flow test. We have sought to
recover our 2018 cash calls to the extended well test ("EWT")
budget and exchange our exposure to the EWT from a direct interest
in HHDL to GBP1,000,000 (57,142,857) shares in UKOG.
We are expecting excellent results from the EWT flow test and by
holding UKOG shares in lieu of the direct interest in HHDL we
believe that should the EWT continue to perform as expected we can
leverage directly off any positive movements the UKOG share price
without having to contribute significant cash payments directly to
the HHDL budget.
Furthermore we gain exposure to UKOG's other projects including
the advanced Broadford Bridge, also in the Weald Basin."
This announcement contains inside information for the purposes
of Article 7 of EU Regulation 596/2014.
The directors of Primorus accept responsibility for this
announcement.
For further information, please contact:
+44 (0) 20 7440
Primorus Investments plc: 0640
Alastair Clayton
+44 (0) 20 7213
Nominated Adviser: 0880
Cairn Financial Advisers LLP
James Caithie / Sandy Jamieson / Richard
Nash
+44 (0) 20 3621
Broker: 4120
Turner Pope Investments Limited
Andy Thacker
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END
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