Attis Oil and Gas Ltd Extension of Bridge Loan Facility & Other matters (2619H)
March 23 2020 - 12:04PM
UK Regulatory
TIDMAOGL
RNS Number : 2619H
Attis Oil and Gas Ltd
23 March 2020
Attis Oil & Gas Ltd / Index: AIM / Epic: AOGL/ ISIN:
VGG6622A1057 / Sector: Oil and Gas
23 March 2020
Attis Oil & Gas Ltd ('the Company')
Extension of Bridge Loan Facility
Update on Sale of Assets, Memorandum of Understanding, and
Operational Update
Extension of Bridge Loan Facility
Attis Oil and Gas Ltd (AIM: AOGL), the AIM listed oil and gas
company, announces a one month extension of the five-month senior
secured funding facility of GBP460,000 with 6 shareholders and the
Company's COO, Thom Board and Chairman, Paolo Amoruso due for
payment on or before 21 March 2020. Further extensions will be
evaluated by the loan holders on a month to month basis. The
material terms of the facility comprise interest of 10% per annum
accruing monthly and paid with principal at the end of the five
month term, a fixed and floating charge over the Company's Zink and
Austin assets, and the issue of 460 million five-year warrants
priced at 0.1 pence per share.
Disposal of Assets
The Company's previously announced plan to dispose of its
interests in the Austin Field, Zink Ranch and Fort Worth continues
to progress. Current commodity price fluctuations have made the
operation and sale of the Austin Field more challenging. In order
to preserve cash, reduce wear and tear on the assets, and reduce
ongoing cost, the Austin Field will be shut in until oil prices
rebound. The Company continues to advance the sale of Zink Ranch
with multiple parties, but the current environment has created a
liquidity crunch requiring an extension to the time to close. It is
expected that Forth Worth will be sold for the plug and abandonment
liability to a third party.
Memorandum of Understanding ("MOU")
The Company continues to work towards the completion of a
transaction with a North American focused oil company and under the
previously announced MOU (see RNS of 2 January 2020). The current
market environment has delayed the raising of the cash resources
and securing the assets needed for a mutually agreeable
transaction, but the parties remain committed to finding a path
forward in the near future. As soon as the conditions are
satisfied, the parties will seek to complete the transaction
including publishing the AIM admission document seeking approval by
Attis' shareholders.
Company Operations
Subsequent to the Company's previously stated disposal strategy,
COVID-19 has increased pressure on operations due to restrictions
on movement of our office and field staff. The Company has further
closed the oilfield services division and terminated all employees
associated with that work, is cutting operational and overhead
cost, settling existing debts where possible. Furthermore, the
Company is also evaluating other opportunities in order to enter
into strategic mergers or reverse takeovers in order to survive the
depressed market conditions.
Paolo Amoruso, Attis' Executive Chairman said, "It has been an
extremely challenging quarter for the Company and the Board is
working to preserve shareholder value, obtain the best price for
the assets and where necessary, cut costs and non-profitable
divisions in this depressed commodity environment. We are further
taking all steps necessary to shut in oil wells in anticipation of
further restrictions on the movement of people. I thank the loan
holders for the extension of the loan repayment period and all
shareholders in this very difficult time".
**ENDS**
For further information visit www.attisog.com or contact the
following:
Paolo Amoruso Attis Oil & Gas Ltd +1 713 869 1544
Thom Board Attis Oil & Gas Ltd +44 20 7236 1177
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Roland Cornish Beaumont Cornish Ltd +44 20 7628 3396
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James Biddle Beaumont Cornish Ltd +44 20 7628 3396
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Frank Buhagiar St Brides Partners Limited +44 20 7236 1177
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Megan Dennison St Brides Partners Limited +44 20 7236 1177
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Colin Rowbury Novum Securities Limited +44 20 7399 9400
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About Us
Attis Oil & Gas Ltd is an AIM-traded (London Stock Exchange)
North American-based energy company. It is actively pursuing a
primary recovery oil strategy focused on re-stimulating wells
within mature producing basins with immediate cash flow from
projects that are shallow, low risk with low levels of capex and
infrastructure already in place. Attis is also seeking to develop
new drill opportunities within both existing & new acreage.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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