Phoenix Global Resources PLC Proposed Non-core Assets Sale

Fecha : 21/10/2019 @ 01:00
Fuente : UK Regulatory (RNS & others)
Emisora : Phoenix Global Resources Plc (PGR)
Cotización : 8.6  0.0 (0.00%) @ 06:02
Phoenix Global Resources Cotización de acciones Gráfica

Phoenix Global Resources PLC Proposed Non-core Assets Sale

Phoenix Global Resources (LSE:PGR)
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RNS Number : 4638Q

Phoenix Global Resources PLC

21 October 2019

21 October 2019

Phoenix Global Resources plc

("Phoenix" or the "Company")

Proposed Non-core Assets Sale

Phoenix Global Resources (AIM: PGR; BCBA: PGR), the upstream oil and gas company offering its investors direct exposure to Argentina's Vaca Muerta shale formation and other unconventional resources, announces the proposed sale of a non-core asset.

Petrolera El Trebol SA, a wholly owned subsidiary of the Company has entered into an agreement with Echo Energy plc ("Echo") to sell its 70 per cent. non-operated working interest in the Santa Cruz Sur package of five mature production blocks (the "Santa Cruz Sur Assets").

The Santa Cruz Sur Assets are located in the Austral Basin, in the Santa Cruz province in southern Argentina.

This transaction represents the sale of a non-core asset, in line with the Company's strategy to restructure Phoenix's portfolio, to focus the Company's resources on the development of its significant unconventional oil and gas portfolio.

Asset Description

-- The Santa Cruz Sur Assets have a net current production of approximately 2,507 boepd (1,967 boepd of gas and 540 bpd of oil) net production to a 70 per cent. interest;

-- In the H1 2019 unaudited accounts, the Santa Cruz Sur Assets (70 per cent.) generated a netback of approximately US$1.3 million and an EBITDAX of US$0.7 million;

-- 1P reserves of 4.3 mmboe and 2P reserves of 13.7 mmboe (net to a 70 per cent. interest) as at 31 December 2018; and

-- The Santa Cruz Assets are carried at an historical book value of approximately US$41 million in the H1 2019 financial statements; the disposal will release cash resources that will be redeployed in the development of our unconventional assets, which the Board believes will realise greater value for shareholders.

Sale Consideration

The initial consideration for the sale is US$7 million in cash plus applicable local taxes and a further US$1.5 million, which will be satisfied by the issue of 39,724,576 new ordinary shares of Echo (the "Consideration Shares"), at a price of 2.95 pence per ordinary share being the 20 day volume weighted average price prior to the date of this announcement.

Phoenix has agreed to a three-month lock-in in respect of 100% of the Consideration Shares and a further three-month lock-in in respect of 50 per cent. of the Consideration Shares.

The Sale agreement provides for further contingent deferred cash consideration of US$1.5 million, subject to an increase in the proven reserves attributable to the Santa Cruz Sur Assets as derived from a relevant competent person's report, compared to a 2018 competent person's report.

Echo has also agreed to reimburse 60% of the cost, up to a maximum of US$1.1 million, of the Campo Limite well on one of the Santa Cruz Assets, which is due to be spudded during Q4 2019; US$500,000 in cash and the balance in ordinary shares of Echo.

This transaction is subject to certain conditions being satisfied including the waiver of right of first refusal and tag-along rights by ROCH SA, the minority partner in the Santa Cruz Sur Assets, which must be fulfilled within 14 days. If these conditions are not satisfied the transaction will terminate. Completion must take place within 30 business days or the agreement will also terminate.

For further information, please contact:

Phoenix Global Resources plc  Kevin Dennehy, CFO  T: +54 11 5258 7500 
Shore Capital                 Antonio Bossi       T: +44 20 7408 4090 
 Joint broker and nominated    David Coaten 
  Panmure Gordon                Charles Lesser      T: +44 20 7886 2500 
  Joint broker 
  Camarco                       Billy Clegg         T: +44 20 3757 4980 
  Financial PR                  Owen Roberts 
                                James Crothers 

About Phoenix

Phoenix Global Resources is an independent oil and gas exploration and production company focused on Argentina and listed on both the London Stock Exchange (AIM: PGR) and the Buenos Aires Stock Exchange (BCBA: PGR). The Company has over 1.8 million licenced working interest acres in Argentina (of which over 0.7 million are operated), 57.1 million boe of working interest 2P reserves and average working interest production of 10,249 boepd in 2018. Phoenix has signi cant exposure to the unconventional opportunity in Argentina through its approximately 700,000 working interest acres with Vaca Muerta and other unconventional potential.

The Company's website is

- ENDS -

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact or visit



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October 21, 2019 02:00 ET (06:00 GMT)

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