Attis Oil and Gas Ltd Update on Asset Sale Programme (6901M)
May 12 2020 - 12:16PM
UK Regulatory
TIDMAOGL
RNS Number : 6901M
Attis Oil and Gas Ltd
12 May 2020
Attis Oil & Gas Ltd / Index: AIM / Epic: AOGL/ ISIN:
VGG6622A1057 / Sector: Oil and Gas
12 May 2020
Attis Oil & Gas Ltd ('the Company')
Update on Asset Sale Programme
Attis Oil & Gas Limited ("Attis") today announces that, in
line with the asset sale strategy announced on 1 January 2020, it
has disposed of its subsidiary company, Northcote Cleveland LLC,
which holds the Zink Ranch lease, for a consideration of $250,000
payable in cash over the next 4 months plus assumption by the
acquirors of the $50,000 operator's bond currently held by the
Company.
The disposal was to a consortium of buyers which included Paolo
Amoruso, Executive Chairman of the Company, who purchased a 20%
interest in Northcote Cleveland LLC. The disposal is therefore a
related party transaction pursuant to the AIM Rules for Companies.
The independent Directors consider, having consulted with the
Company's nominated adviser, that the terms of the transaction are
fair and reasonable insofar as the Company's shareholders are
concerned. In taking this judgement into account they note that the
cash consideration for the sale of Zink Ranch lease was US$25,000
higher than that offered by a third party.
In addition, and further to the Company's announcement of 19
February 2020, the Company has now disposed of its interests in the
Fort Worth field for a nominal amount and the relinquishment of the
bond associated with the field for the assumption by the acquiror
of the plugging and abandonment ("P&A") and tax liabilities on
the 98 wells on the field.
The Board advised shareholders in February that APEG, the
Company's JV partner in the Fort Worth field, had not been meeting
its financial obligations and the field had been operating at a
loss given the historically low natural gas prices in the US.
Further, the disposal of the field avoids any operator P&A
liabilities which are currently estimated at approximately $25,000
per well.
In the six months to 30 June 2019, the Zink Ranch lease
contributed no revenue to the Company and was carried on the
Balance Sheet at $500,000 as at that date whilst the Company's
interest in the Fort Worth Field contributed revenue of $229,921 to
the Company and had cost of sales $79,219 and was carried on the
Balance Sheet at $2,021,000.
The Company is still the owner and operator of the Austin Field
in Texas. Production at the field is currently shut-in given the
oil price environment. The proceeds from the disposals above will
be used for general working capital purposes.
**ENDS**
For further information visit www.attisog.com or contact the
following:
Thom Board Attis Oil & Gas Ltd +44 20 7236 1177
Paolo Amoruso Attis Oil & Gas Ltd + 1 713 869 1544
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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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Colin Rowbury Novum Securities Limited +44 20 7399 9400
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END
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