Update Re. Proposed Acquisition (0825A)
March 26 2012 - 8:46AM
UK Regulatory
TIDMNGP
RNS Number : 0825A
Niche Group (The) PLC
26 March 2012
For immediate release: 26 March 2012
The Niche Group plc
("Niche" or the "Company")
Update Re. Proposed Acquisition
Further to the announcement of 13 December 2011, Niche, the oil
and gas focused investment company, is pleased to update
shareholders with respect to the potential acquisition of the
entire issued share capital of Oman Resources Limited (the "Oman
Transaction") and announces that the Company has agreed non-binding
commercial terms with Arar Petrol ve Gaz AUPAS ("Arar") under which
either Niche or Oman Resources Limited ("Oman") would acquire
Arar's 50% interest in the four petroleum licence blocks (the
"Blocks") held in partnership with Oman (the "Arar Transaction").
Successful completion of the Arar Transaction combined with the
completion of the Oman Transaction would result in the Niche group
of companies holding a 100% interest in the Blocks.
Oman has established a valuable foothold in the Turkish oil and
gas market by farming in for a 50% interest in four petroleum
licence blocks. Three blocks, numbered AR/ARR/4396, AR/ARR/4395 and
AR/ARR/4394, are situated in the Iskenderun Basin, close to the
Eastern Mediterranean Sea, whilst AR/ARR/4077 is situated in the
Tuz Golu Basin in the Konya region. The blocks are operated by Arar
in which Niche acquired a 5% shareholding in 2011.
The Blocks contain multiple gas discoveries, some of which have
near term production potential. Senergy (GB) Ltd carried out
independent evaluations of recoverable hydrocarbons across the
Blocks in June and October 2011 which identified gas reserves and
contingent and prospective resources.
Each of Oman and Arar have agreed an exclusivity period during
which they have agreed not to negotiate or discuss the sale of any
interest in the licences described above to any party other than
Niche. It is envisaged that the Arar Transaction, subject to
consent of the Panel and shareholder approval, would result in
Arar's Managing Director, Mr Fatih Alpay, having a controlling
interest in the Company and that Mr Alpay, who has 30 years
experience drilling as an independent contractor/operator, would be
appointed to the board of Niche along with a number of further
management changes.
The proposed Oman Transaction and Arar Transaction would
constitute a Reverse Takeover for the purposes of the AIM Rules and
would therefore be subject to shareholder approval. It is expected
that any transaction would involve a fundraising. The Company
requested a temporary suspension of trading in its shares on 13
December 2011 until such time as it publishes an Admission
Document.
Niche, Oman Resources and Arar are working together to conclude
the Oman Transaction and the Arar Transaction as soon as
practicable and each of the parties has instructed solicitors to
prepare the associated documentation.
The Company will make a further announcement when appropriate
but it should be noted that, at this stage, Niche can give no
assurances that either the Oman Transaction or the Arar Transaction
will be successfully completed.
Stuart Thomas, Executive Chairman of Niche, commented:
"Following extensive discussions in recent weeks I am delighted
that the transactions have been agreed in principle as we move
closer to delivering Niche ownership of a number of attractive
hydrocarbon assets onshore Turkey."
Towfik Al Swaidi, Director of Oman Resources, said:
"We are pleased to be working with Niche and Arar to deliver a
transaction that we believe brings significant value to all
parties."
Fatih Alpay, Managing Director of Arar, added:
"Arar welcomes the full engagement and commitment of the Niche
board in our collective efforts to conclude a mutually beneficial
transaction that will align the interests of all stakeholders in
the four Blocks."
Enquiries:
The Niche Group plc
Stuart Thomas
Tel. +44 (0)1491 629609
Daniel Stewart & Co. Plc - Nominated Advisor and Joint
Broker
Paul Shackleton or Emma Earl
Tel. +44 (0)20 7776 6550
M: Communications
Ben Simons
Tel. +44 (0)20 7920 2340
This information is provided by RNS
The company news service from the London Stock Exchange
END
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