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Circle Oil PLC (COP)

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Friday 20 May, 2016

Circle Oil PLC

Strategic Review Update

RNS Number : 8072Y
Circle Oil PLC
20 May 2016
 

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.

 

                                                                                                                               

 

 

 

 

 

20 May 2016

 

CIRCLE OIL PLC

("Circle" or the "Company")

 

Strategic Review Update

Further to the announcement of 15 March 2016, Circle Oil plc (AIM: COP) the international oil and gas exploration, development and production company, provides an update on the Strategic Review Process.

To date the Company has received a number of indicative proposals, which are in the process of being evaluated, and is working to conclude the Strategic Review Process as expediently as possible. 

After taking into account the Company's $77.5 million outstanding debt position (which comprises the $20.0 million convertible loan held by KGL Investment Company and the $57.5 million reserve base lending facility with International Finance Corporation which is fully drawn) and based on the indicative proposals received to date, it is likely that there will be little or no value attributed to Circle Oil plc equity holders.

The management continue to consider all options to maximise value for shareholders and stakeholders. As previously announced, the scope of the options being considered under the Strategic Review include, but are not limited to, a debt restructuring, a sale of one or more of the Company's existing assets, a corporate transaction such as a merger with a third party, the sale of the entire issued, and to be issued, share capital of the Company and the raising of capital in the form of a subscription for new ordinary shares in the Company by one or more third parties.

A further update will be given in due course.

 

For further information contact: 

 

Circle Oil Plc (+44 20 7182 4913)

Mitch Flegg, CEO

 

Investec (+44 20 7597 5970)
Chris Sim
George Price

James Rudd

Jonathan Wynn

 

Murray (+353 1 498 0300)
Joe Heron

Pat Walsh

Notes to Editors

Circle Oil plc (AIM: COP) is an international oil & gas exploration, development and production company holding a portfolio of assets in Morocco, Tunisia, and Egypt with a combination of low-risk, near-term production, and significant upside exploration potential. The Company's shares were admitted to trading on AIM in October 2004.The Company has assets in the Rharb Basin, Morocco; the Ras Marmour Permit in southern Tunisia; the Beni Khalled permit in northern Tunisia, the Mahdia Permit offshore Tunisia and the NW Gemsa permit in Zeit Bay area of Egypt.

Circle's strategy is to locate and secure additional licences in prospective hydrocarbon provinces and, through targeted investment programmes, monetise the value in those assets for the benefit of shareholders. This could be achieved through farm-outs to selected partners who would then invest in and continue the development of the asset into production, or Circle may opt to use its own expertise to appraise reserves and bring assets into production, generating sustained cash flow for further investment.

Further information on Circle is available on its website at www.circleoil.net.


This information is provided by RNS
The company news service from the London Stock Exchange
 
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