Release from historic potential ?2m liability

RNS Number : 8059V

UK Oil & Gas Investments PLC

18 December 2013

 



For immediate release - 07.00                                                                                                   18 December 2013

UK Oil & Gas Investments PLC

("UKOG" or "the Company")

UKOG released from historic £2 million Potential Liability

UK Oil & Gas Investments Plc (AIM: UKOG) is pleased to announce that the Company has now been formally released from the potential £2m liability to HSBC under a cross guarantee at no cost to the Company. This liability existed from when the Company's main historic business was the manufacturing of specialty antennas.

David Lenigas, the Company's Chairman, commented:

"This is excellent news for our shareholders as it marks a clear departure from the past by removing the residual risk of any claims relating to the historic £2m loan. UKOG can now concentrate all of its energy on pursuing compelling investment opportunities in the domestic conventional oil and gas sector in the UK."

About the HSBC Cross Guarantee:

A £2m cross guarantee was established back in February 2012 between Sarantel PLC (now known as UKOG) and its  subsidiary  Sarantel Ltd (a speciality antenna manufacturing company) as part of a security package to cover HSBC if a £2m loan facility was not repaid by Sarantel Ltd.  HSBC required Sarantel Ltd. to put this guarantee in place as an additional security measure before they would agree to finalise the loan facility.

When Sarantel PLC's subsidiary, Sarantel Ltd., was placed in administration in June 2013, it had no financial resources to pay back the £2m loan. The loan has now been settled in full by Harris Corporation, the party which provided security for the loan, and the release from the cross guarantee has now been unconditionally granted by HSBC. This now completely removes any potential risk of claims relating to the loan being made against the Company.

Enquiries:

Sarantel Group PLC	Tel: [phone]
David Lenigas / Donald Strang
Beaumont Cornish (Nominated Adviser)	Tel: [phone]
Roland Cornish / Michael Cornish /Felicity Geidt
XCAP Securities PLC (Corporate Broker)	Tel: [phone]
David Lawman Square 1 Consulting (Public Relations) David Bick/Mark Longson	Tel: [phone]

 

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