Gulfsands Petroleum PLC Corporate Update - Arawak Energy Relationship (9668C)
January 23 2015 - 2:01AM
UK Regulatory
TIDMGPX
RNS Number : 9668C
Gulfsands Petroleum PLC
23 January 2015
Gulfsands Petroleum Plc
Corporate Update
MENA Region Strategic relationship with Arawak Energy
US$20 million Convertible Loan Financing with Arawak Energy
London, 23(rd) January, 2015: Gulfsands Petroleum plc
("Gulfsands", the "Group" or the "Company" - AIM: GPX), the oil and
gas production, exploration and development company with activities
in Syria, Morocco, Tunisia and Colombia provides the following
update with respect to its relationship with Arawak Energy
International Limited ("Arawak") concerning the Strategic
Cooperation Agreement for the acquisition and development of new
business opportunities in the Middle East and North Africa ("MENA")
region (the "Strategic Cooperation Agreement") and the US$20
million Convertible Loan Facility (the "Loan Facility" and the
"Facility Agreement") announced on 19(th) November, 2014.
Late on 22(nd) January, 2015, the Company was advised by Arawak
that as a result of its dialogue with the Company over recent days
and corporate developments over the last few weeks including public
statements made by certain shareholders of the Company and
non-executive directors of the Company, Arawak has determined that
it should terminate the Strategic Cooperation Agreement.
Further, Arawak has confirmed that in view of these events, it
reserves all of its rights under the Facility Agreement. Arawak's
rights under the Facility Agreement may in certain circumstances,
include the right to terminate the Loan Facility and to require
repayment of all moneys advanced under the Loan Facility.
Arawak has also advised the Company that in the event the
removal of Messrs Sajjad and Judge as Executive Directors of the
Company, whose removal as Directors of the Company are matters the
subject of resolutions to be considered at a General Meeting of the
Company on 3(rd) February, 2015, takes effect, it will not hesitate
to act to enforce its rights under the Loan Facility.
At the present time, US$10 million has been advanced by Arawak
under the Loan Facility. In the event the Loan Facility is
cancelled and repayment is required in the circumstances to which
Arawak has referred, the Company would be obligated to repay all
moneys advanced by Arawak together with additional fees and
expenses estimated at approximately US$1 million, within
approximately 90 days of the date of receiving Arawak's notice of
demand for repayment.
Having been informed of Arawak's views in relation to these
matters, shareholders should consider the implications of the
decisions to be taken at the General Meeting to be held on 3(rd)
February, 2015.
In light of these developments, the Company will necessarily
have to examine its options to ensure the availability of funding
to repay moneys owing under the Arawak Loan Facility and to
continue to finance the Group's corporate activities, should Arawak
move to demand repayment of advances under the Loan Facility.
A further update on all of these matters, including developments
with respect to the relationship with Arawak, will be provided as
soon as possible.
For further information on the matters referred to in this
announcement, please refer to the Company's website
www.gulfsands.com
Gulfsands Petroleum +44 (0)20 7024 2130
Mahdi Sajjad, Chief Executive Officer
Kenneth Judge, Commercial Director
Buchanan +44 (0)20 7466 5000
Bobby Morse
Ben Romney
RBC Capital Markets +44 (0)20 7653 4000
Matthew Coakes
Daniel Conti
Jakub Brogowski
FirstEnergy Capital +44(0)20 7448 0200
Jonathan Wright
Certain statements included herein constitute "forward-looking
statements" within the meaning of applicable securities
legislation. These forward-looking statements are based on certain
assumptions made by Gulfsands and as such are not a guarantee of
future performance. Actual results could differ materially from
those expressed or implied in such forward-looking statements due
to factors such as general economic and market conditions,
increased costs of production or a decline in oil and gas prices.
Gulfsands is under no obligation to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise, except as required by applicable
laws.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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