Polo Resources Limited HIBISCUS PETROLEUM - INVESTMENT UPDATE (0293P)
07 Octubre 2019 - 8:51AM
UK Regulatory
TIDMPOL
RNS Number : 0293P
Polo Resources Limited
07 October 2019
This announcement contains inside information as defined in
Article 7 of the EU Market Abuse Regulation No 596/2014 and has
been announced in accordance with the Company's obligations under
Article 17 of that Regulation.
7 October 2019
Polo Resources Limited
("Polo" or the "Company")
HIBISCUS PETROLEUM - INVESTMENT UPDATE
Hibiscus Petroleum Group Executes Conditional Sale and Purchase
Agreement to Acquire Crown Discovery in the North Sea
Polo Resources Limited (AIM: POL), the multi-sector investment
company with interests in oil, gold, coal, copper, phosphate,
lithium, iron and vanadium, notes that its 8.75% investee company
Hibiscus Petroleum Berhad ("Hibiscus") has announced that its
indirect wholly--owned subsidiary, Anasuria Hibiscus UK Limited
("AHUK"), has entered into a conditional SPA to acquire License
P2366, from United Oil & Gas PLC ("United") and Swift
Exploration Limited ("Swift") (collectively referred to as
"Sellers") for a total cash consideration of up to USD5
million.
The Blocks are located offshore in the United Kingdom sector of
the North Sea, approximately 250km northeast of Aberdeen. The
Blocks include the Crown Discovery which consists of 2C contingent
resources that range between 4 to 8 million barrels of oil, subject
to an independent 3rd party expert assessment. The Blocks are
located 12km south--east of Marigold field, which together with the
Sunflower field, was acquired by AHUK in October 2018.
United and Swift were awarded License P2366 as part of the
United Kingdom's Oil and Gas Authority's
("OGA") 30th Licencing Round, in August 2018, and they each hold
95% and 5% participating interest respectively.
AHUK holds 50% operated interest in Licence P198 Blocks 15/13a
and 15/13b containing the Marigold and Sunflower oilfields
respectively, in addition to 50% joint--operating interests in the
P013 licence consisting of the Teal, Teal South and Guillemot A
fields, as well as 19.3% non--operating interest in the P185
licence consisting of the Cook field. The Teal, Teal South,
Guillemot A and Cook fields which produce oil and gas to the
Anasuria Floating Production Storage and Offloading facility are
collectively known as the Anasuria Cluster. The Anasuria Cluster is
located offshore in the United Kingdom sector of North Sea.
Pursuant to further negotiations with the Sellers post execution
of the earlier conditional non--binding term sheet, the payment
terms of the proposed acquisition of License P2366 would commence
with a non--refundable payment of USD0.1 million to the Sellers
(unless the default is not due to AHUK) and a further USD0.9
million upon completion of the SPA. Subject to further milestones
being achieved post SPA completion, an additional sum of USD3
million will be paid within 7 business days of the actual date of
approval of the Marigold Field Development Plan ("FDP") which
includes the development of the Crown discovery as part of the
overall Marigold development ("FDP Approval"), by the relevant
United Kingdom regulatory authority, which is expected to be
received by the end of 2020. However, if FDP Approval is not
achieved, or if the Marigold FDP submitted does not include the
development of the Crown discovery, AHUK may, at its discretion,
proceed with the USD3 million payment or transfer License P2366
back to the Sellers at nominal consideration without any further
payment obligation. In addition, up to USD1 million will be paid
through an overriding royalty scheme once the Crown discovery has
commenced production.
Given its proximity to Marigold, the contemplated development of
Crown is based on a single well subsea tieback to the Marigold
field.
The proposed consideration was arrived at on a similar basis to
the consideration paid for the Marigold and Sunflower fields as
they are seen as being accretive to the existing Marigold and
Sunflower development.
The proposed acquisition of License P2366 is subject to the
receipt of OGA's approval for the assignment of the license to AHUK
and the appointment of AHUK as operator. If the conditions have not
been fulfilled or waived by the parties by 31 December 2019 (or
such later date no later than 31 March 2020 as the parties may
mutually agree), the proposed acquisition would be terminated
according to the terms of the SPA.
About United Oil & Gas PLC
United Oil & Gas PLC is an independent oil & gas
start--up established in 2015. It is listed on the AIM market of
the London Stock Exchange.
About Swift Exploration Limited
Swift Exploration Limited is a private oil and gas exploration
company formed in 2003. It focuses on developing exploration and
production opportunities in the North Sea and the UK onshore for
farmout/sale.
The full details of this announcement can be found at
http://www.hibiscuspetroleum.com/.
For further information, please contact:
Polo Resources Limited
- Kudzayi Denenga, Investor Relations +27 (0) 787 312 919
Allenby Capital Limited (Nominated
adviser & broker)
- John Depasquale +44 (0)20 3328 5657
About the Company
Polo Resources Limited is a multi-sector investment company
focused on investing in undervalued companies and projects with
strong fundamentals and attractive growth prospects. For complete
details on Polo, please refer to: www.poloresources.com.
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END
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