Company Update

RNS Number : 9008S

Igas Energy PLC

29 December 2016

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION.

NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART IN, INTO OR FROM
ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF
THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION.

29 December 2016

IGas Energy plc (AIM: IGAS)

("IGas" or the "Company")

Company update

IGas provides the following update regarding the board's ongoing discussions with key stakeholders.  The Company has recently met with certain of the Company's bondholders and potential strategic investors to discuss its capital restructuring options and valuation of the Company, as it continues to assess options which will allow a new capital structure for the Company that is sustainable in the current oil price environment and enables IGas to capitalise on value accretive opportunities. 

IGas confirms it is now in well progressed discussions with one potential strategic investor.  Discussions with this strategic investor and other stakeholders and investors are ongoing and there can be no certainty that an agreement will be reached or that a transaction will be forthcoming (a "Potential Transaction").

The Company continues to hold significant cash resources of c.US$32 million as at 22 December 2016. As previously announced, the Company expects that it will remain compliant with its daily liquidity covenant until late March 2017, based on current forecasts.

As previously disclosed, the Company confirms that its current forecasts project non-compliance with its leverage covenants as at 31 December 2016. The Company's position, following receipt of legal advice, remains that in the event of a breach of the leverage covenants, an equity cure provision exists within the bond agreements, such that a breach can be cured within 25 business days of the delivery of the compliance certificate for that period. For the twelve months ending 31 December 2016, the compliance certificate must be delivered by 30 April 2017, and accordingly the latest date for any equity cure would be early June 2017.

The board expects completion of the Potential Transaction would remedy any leverage covenant breaches as at 31 December 2016 and remedy the forecast breach of the daily liquidity covenants.

The Company will continue to update the market as and when appropriate.

For further information please contact:

IGas Energy plc

Tel: [phone]

Stephen Bowler, Chief Executive Officer

Julian Tedder, Chief Financial Officer

Ann-marie Wilkinson, Director of Corporate Affairs

Investec Bank plc (NOMAD and Joint Corporate Broker)

Tel: [phone]

Sara Hale/Jeremy Ellis/George Price

Canaccord Genuity (Joint Corporate Broker)

Tel: [phone]

Henry Fitzgerald-O'Connor

Vigo Communications

Tel: [phone]

Patrick d'Ancona/Chris McMahon

Disclaimers

This announcement has been prepared by the Company exclusively for information purposes.  It does not constitute or include any recommendation by the Company (or any other person) regarding the securities of the Company or as to the merits of any transaction or the making of any investment decision.  It does not constitute or include any confirmation or commitment by the Company (or any other person) regarding the present or future value of the business of the Company, its securities, its affiliates or any of the Company's or their assets.

This announcement is not intended to and does not constitute or form part of any offer to sell or subscribe for or any invitation to purchase or subscribe for any securities or the solicitation of any vote or approval in any jurisdiction.

The release, publication or distribution of this announcement in, into or from jurisdictions other than the United Kingdom may be restricted by law or regulation and therefore any persons who are subject to the laws or regulations of any jurisdiction other than the United Kingdom should inform themselves about, and observe, any applicable requirements.

There are matters set out within this announcement that are forward-looking statements. Such statements are only predictions, and actual events or results may differ materially.  For a discussion of important factors which could cause actual results to differ from forward-looking statements, refer to the Company's Annual Report and Accounts for the nine months to 31 December 2015. The Company does not undertake any obligation to update publicly, or revise, forward-looking statements, whether as a result of new information, future events or otherwise, except to the extent legally required.

 

END

 

 

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