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TXO PLC (TXO)

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Tuesday 30 September, 2014

TXO PLC

Investment Update

RNS Number : 9284S
TXO PLC
30 September 2014
 

TXO PLC
("TXO" or the "Company")

Investment Update

 

TXO, the AIM-quoted energy resource and clean technology investment company, announces an update on its various investments and other matters, pre its financial year end.

 

TXO PLC

 

The Group is in advanced discussions with regards to renegotiating the terms of the convertible loans and settling with all its current convertible lenders.  A further announcement is expected to be made shortly.

 

Grand Bahama Group Limited ("GBG")

 

Morgan Oil Marine (Bahamas) Limited ("MOM") continues to operate in partnership with Oil Recovery Services ("ORS") both inside and outside of the Freeport bonded area in Grand Bahama.  The business is primarily involved in the collection and reprocessing of oil waste from ships and the reprocessing of the same.

Whilst operations continue outside of the bonded area and are expected to do so throughout the remainder of this year, MOM is in the process of moving to a completely new site within the bonded area that has been levelled and made available to MOM by the Freeport Harbour Company. With its own dedicated channel and close proximity to the Freeport Container Port, the Borco Oil Terminal, and the Ship Yard, it is ideal for MOM's future planned operations. A new Plant layout, Environmental Impact Assessment and Environmental Management Plan are currently being prepared and will be submitted to the Grand Bahama Port Authority in relation to the site, as soon as the new lease has been entered into with the Freeport Harbour Company. 

MOM is also in partnership discussions with a major international oil company that are considering joint-venturing with MOM in the Bahamas and elsewhere in the World. If terms can be agreed, this could provide a significant increase in the volume of waste to be received and a market for the sale of the "off-spec" fuels and oils it will produce as a result. An announcement in respect of the potential partnership will be made in due course.

Although MOUSA still plans to enhance the oil recovery from its existing, oil producing assets in Kentucky, USA , in the short-term the focus remains on the Bahamas.

 

Oil Recovery Services Limited ("ORS")

 

In addition to the two projects with MOM in the Bahamas referred to above, ORS has a number of opportunities in other regions. The Directors of TXO consider that the joint venture with Athabasca Resources Limited in Canada, mentioned below, has tremendous potential. However, despite a strategic partnership recently established with a major engineering group focussed on oil infrastructure maintenance, progress in the Middle East has slowed due to recent conflicts. Several key tenders for oil and land remediation are scheduled to be released by various countries in Q1 2015 and ORS is proposing to bid for these projects.

 

Athabasca Resources Limited ("ARL")

 

ARL has advised that it is still expecting a listing before the year end. As announced recently, ARL has agreed heads of terms on a joint venture with ORS to develop and exploit technology enabling recovery of oil and bitumen from leases in the Athabasca oil sands region of Canada. Although this is early stage we are excited by the prospect of combining the technology with the development of the asset and validating its commercial potential.

 

Oil Tech Royalties Inc ("OTR")

OTR is currently in advanced talks with regard to contracting the processing of fuel emulsions with a significant Central American power plant in a joint venture.

In addition the company is engaged with a State owned Middle Eastern oil company to place and test the proprietary acoustic flow reactor valve.

OTR is also in discussion with one of the world's largest investor-owned power and gas companies, with close business connections to one of the largest Middle Eastern oil companies, regarding a joint venture with OTR in one of the largest oil producing countries.

The company recognises that to follow up all the leads it has may require some additional modest working capitalto bring in a technical associate, or external engineer, to assist in closing the discussions with the above. TXO and its business partners are looking to source additional working capital for OTR outside of its current shareholder base.

Tasmania Oil and Gas Limited ("TOG")

A motion for summary judgement by Smart Win International Limited against Empire Energy Corporation International Inc. is due to be heard by the Judge on the 30th October. As announced on the 17th of July 2014, the view of the US Counsel is that this is likely to be turned down and the case then moved to trial.

TXO does not carry any value in its balance sheet for this case. So any benefit would only be upside to TXO. Neither TXO nor TOG have any further financial commitments to the case.

Further announcements will be made as appropriate.

Tim Baldwin, Chairman and CEO of TXO, commented:

 "We believe that the next quarter of the calendar year, being the new financial year for TXO, should reasonably conclude a number of the projects and joint ventures outlined above and we expect to report progress accordingly."

30th September 2014

For further information, please contact:

 

TXO PLC
Tim Baldwin, Chairman                                     +44 (0) 207 518 4300

 

Northland Capital Partners Limited                +44 (0) 207 382 1100
John Howes / Alice Lane

Sales and Broking

 

Edward Hutton / William Vandyk

Nominated Adviser

 

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 four main investments namely: The Grand Bahama 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; Oil Recovery Services Limited ("ORS"), which has proprietary technology for the reprocessing of contaminated oils and the remediation of dirty water; Oil Tech Royalties Inc ("OTR"), a joint venture company with a licence to commercialise a proprietary acoustic flow reactor valve; Athabasca Resources Limited ("Athabasca Resources") which has signed an agreement to acquire a 50 per cent. farm-in interest in certain Alberta Crown Leases covering 7,936 hectares in the Athabasca oil sands in Alberta, Canada.  TXO also has an interest in Tasmania Oil and Gas Limited ("TOG") a joint venture company set-up to exploit a gas and oil opportunity in Tasmania, Australia, which is non-core.

TXO currently holds a 35.67 per cent. interest in GBG, a 25.1 per cent.interest in ORS, a 30 per cent. interest in OTR  and an 18.8 per cent. interest in Athabasca Resources. It retains a 25 per cent. interest in TOG.

Ends


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