Company update

RNS Number : 9834W

Star Phoenix Group Ltd

28 April 2021

 

Star Phoenix Group Ltd

("Star Phoenix" or "the Company")

29 April 2021

COMPANY UPDATE

Star Phoenix, an AIM listed company (AIM: STA) focused on growth through attractive opportunities, is pleased to provide the following update in relation to its activities with the following highlights:

· Advanced discussions are underway in relation to new projects;

· Specialist broker has been appointed to assist with the sale of the rig business;

·   Lease agreement for one of the rigs has been signed and further are being secured to provide additional revenue whilst the rigs sale process is ongoing;

· Preparation for arbitration against LandOcean is ongoing with claims estimated in excess of US$10 million;

· Work is continuing on progressing an arbitration claim against the government of Georgia, with an investment dispute exceeding US$22 million; and

· Indonesia oil and gas interest to be relinquished.

New projects

The Company's key focus remains on securing new opportunities to provide future growth and value for the Company and its shareholders. Over the last year, the Company has considered, reviewed and evaluated numerous projects and investment opportunities with a view of securing attractive targets.

The Company is pleased to report that it is currently in advanced discussions on a selected number of investment and joint venture opportunities and is focusing its efforts to progress to the next stage. The Board believes these new opportunities would offer shareholders exposure to significant plays in the energy sector and looks forward to sharing the details of these potentially value enhancing opportunities should they progress to binding deals.

Oilfield services business

The Company advises that it has engaged an independent specialist broker to assist with the sale of its rig business comprising of eight rigs and associated equipment located in Trinidad.

The marketing campaign is currently underway, and there has been provisional positive indication from multiple potential buyers, however COVID-related travel restrictions remain a barrier for site visits and inspections. It is, therefore, possible that the sale process may take longer than typically would be expected from a similar sale process.

To generate additional revenue stream for the Company whilst the sale process is ongoing, the Company has been working to secure lease agreements for its rigs and equipment. A lease agreement for one of the rigs has already been executed and further agreements are currently being negotiated.

LandOcean litigation

As previously announced, the Company is claiming various sums that it believes are due to it from LandOcean Energy Services Co. Ltd ("LandOcean") currently estimated above US$10 million. Despite its efforts, the Company was not able to reach an acceptable agreement with LandOcean in relation to the outstanding sums. As a result, the Company and its legal advisers have commenced preparation for arbitration proceedings against LandOcean in the London Court of International Arbitration to recover the sums.

Georgia litigation

As previously announced, the Company's legal advisers had formally notified the government of Georgia of the existence of an investment dispute under the Energy Charter Treaty, which exceeds US$22 million. The Company and Strait Oil and Gas Limited ("SOG"), a private company incorporated in Gibraltar, in which the Company holds a 65% interest are continuing to work with their legal advisers on progressing an arbitration claim against the government of Georgia as soon as practicable.

Indonesia interest

Following extensive efforts by the Company to find a suitable purchaser for its non-operated 23% interest in the Indonesia project, the Directors made a decision to no longer pursue the sale opportunities and will now focus on relinquishing any interests in the project.

Contact Details
Star Phoenix Group Ltd Evgenia Bezruchko (Group Corporate Development Manager & Joint Company Secretary) e. [e-mail] t.   [phone]	WH Ireland Limited (Nominated Adviser and Broker) James Joyce / Matthew Chan t.   [phone]

The information contained within this announcement is considered to be inside information prior to its release, as defined in Article 7 of the Market Abuse Regulation No. 596/2014, and is disclosed in accordance with the Company's obligations under Article 17 of those Regulations.

 

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