TIDMTXO

RNS Number : 7806E

TXO PLC

15 May 2013

FOR IMMEDIATE RELEASE 15 May 2013

TXO PLC

("TXO" or the "Company")

TOG UPDATE

Update on Status of Tasmania Oil and Gas Ltd's Exploration Licence Appeal

The Directors of TXO plc the AIM-listed oil and gas investment company, are pleased to clarify the position as regards the appeal which is ongoing in respect of Licence EL14/2009 (the "Licence"), onshore Tasmania.

Under section 25 (2) of the Mineral Resources Development Act 1995 ("the Act"), the correct procedure in The Ministry of Resources Tasmania ("MRT") granting an extension, is to request an application form together with the prescribed fee as prescribed by the Act. It is a requirement that such an application be filed before the current licence expires.

Accordingly, in May 2012, before the current licence expired, Great South Land Minerals Limited (in Liquidation, Receivers and Managers appointed) ("GSLM") applied for a three year extension of the Licence. In making the application, MRT not only requested the application form and the application fee, but in addition the first year's annual rental payable in respect of the extension, plus Goods and Sales Tax ("GST") which is over and above the requirements set out in Section 25 of the Act.

It is GSLM's contention, backed by strong legal precedent, that in accepting the Application Fee and the first year's rental (outside of the provisions of the Act), MRT specifically performed the granting of a three year extension of the Licence in May 2012.

Subsequent to that, on 9th August 2012, the Minister wrote purporting to refuse the extension of term of the Licence. It is GSLM's contention that the Minister did not have the specific authority to do so under section 25(3) of the Act, as the Licence had already been extended through specific performance in MRT accepting payment of the first year's rent, including GST. At no time since has MRT tried or attempted to return the payment of the first year's rent, nor the GST.

Whilst it would have been open to the Minister to attempt to revoke and/or cancel the Licence under section 34 of the Act in May at the time that the application for extension was made, he failed to do so. However, in any event if he were to have done so, he is required to afford the Licensee an opportunity to make submissions under section 34 (2)(b) of the Act which he failed to do.

Accordingly an appeal was lodged by GSLM within the required 28 days. It is therefore GSLM's contention that the Licence continues in accordance with Section 24(7)(b) of the Act until May 2015 or until such time as the Mining Tribunal makes a decision otherwise and we totally refute MRT's position that the Licence has expired.

While the appeal process is ongoing, the Licence remains valid in accordance with the Act. The appeal is currently scheduled to be heard on 3- 5 July 2013.

For further information, please contact:

TXO PLC

   Tim Baldwin, Chairman                +44 (0) 207 518 4300 
   Fox-Davies Capital Limited         +44 (0) 20 3463 5000

Susan Walker / Daniel Fox-Davies / Richard Hail

Lothbury Financial Services Limited

Michael Padley / Chris Roberts +44 (0) 203 440 7620

Editors' Note

TXO plc, the AIM quoted oil and gas investment company, has two main investments namely: Tasmania Oil and Gas Ltd ("TOG") which is a joint venture company set-up to exploit a gas and oil opportunity in Tasmania, Australia, and The Grand Bahamas Group Limited ("GBG") which is establishing a waste oil collection facility and Hydrocarbon Recovery Plant in the Bahamas at Freeport and also produces oil from its leases in Western Kentucky, USA.

TXO currently holds a 30.17% equity interest in GBG and a 25% equity interest in Tasmania Oil and Gas Limited ("TOG"), which could increase to 31.96% if a convertible loan is exercised.

This information is provided by RNS

The company news service from the London Stock Exchange

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