Operational Update

RNS Number : 2340N

Equatorial Palm Oil plc

24 October 2016

 

24 October 2016                                                                                      

EQUATORIAL PALM OIL plc

("EPO" or the "Company")

Operational Update

Equatorial Palm Oil plc (AIM: PAL), the AIM listed palm oil development and production company with operations in Liberia, West Africa today updates the market with respect to the decision to recommence land development at Palm Bay estate.

As previously announced, Liberian Palm Developments Limited ("LPD") the joint venture company that owns the Liberian oil palm estates has had a moratorium on all development on potential HCS areas since September 2014 pending the conclusion of a High Carbon Stock ("HCS") study. In the interim, LPD has employed the HCS Approach methodology to assess potential HCS areas prior to any development and this has brought about the engagement of The Forest Trust ("TFT") to assess approximately 1,500ha for new plantings on Palm Bay estate.

The TFT exercise has now been completed at Palm Bay estate and LPD has today begun land development which has the consent of the communities, as was announced to the market on 5 May 2016 following a formal consultation process, whereby LPD's Liberian subsidiary, EPO Liberia, signed a Memorandum of Understanding with designated community leaders over four key areas on Palm Bay estate to allow development of its oil palm activities.

Geoffrey Brown, Executive Director of EPO, commented:

"It is pleasing to recommence land development at Palm Bay estate, not only after detailed HCS assessments but also following a 2 year consultation process in which EPO actively engaged with stakeholders to consider all interests relating to oil palm development on our estates."

For further information, please visit www.epoil.co.uk or contact:

Equatorial Palm Oil plc Geoffrey Brown (Executive Director)	[phone]
Strand Hanson Limited (Nominated Adviser) James Harris / James Bellman	[phone]
Mirabaud Securities LLP (Broker) Peter Krens	[phone]

Notes to editors:

Equatorial Palm Oil plc is an AIM listed crude palm oil developer and producer with palm oil estates in Liberia, West Africa.  The Company was founded in 2005 and is focused on becoming a global, sustainable producer of high quality palm oil to regional and international markets.

With a significant land position in Liberia through its operating subsidiary LPD, the Company is geographically well positioned to serve the international and regional markets and is committed to making a positive impact on the communities in which it operates through investment in local schools, health clinics, housing and infrastructure. 

The Company's largest shareholder and 50:50 joint venture partner in LPD is Kuala Lumpur Kepong Berhad ("KLK"). KLK is one of the largest palm oil producers in the world and the Company will greatly benefit from their many years of expertise in oil palm development.

 

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