Settlement of legal dispute

RNS Number : 1396K

Clontarf Energy PLC

25 July 2013

 



25 July 2013

Clontarf Energy plc ("Clontarf" or the "Company") (AIM: CLON)

Settlement of legal dispute

The board of directors of Clontarf Energy announces that legacy legal proceedings in Texas against subsidiaries of the Company and against certain directors of the Company have now been settled. The cost to Clontarf, including legal fees, is £300,000. Hydrocarbon Exploration, a wholly owned subsidiary, has agreed to pay a further £300,000. These payments represent a full and final settlement of the legal dispute.

John Teeling, chairman, commented: "Clontarf Energy is pleased that this legacy legal issue inherited when Clontarf was listed has now been settled. The expense, inconvenience, uncertainty and opportunity costs inherent in proceeding with further litigation in a case ongoing since 2007 led all parties to an agreed settlement without any admission of liability. We have now a strategy in Peru and we are working towards a solution suitable for our Bolivian assets. The Company's focus going forward will be on African oil opportunities".

Two directors of Clontarf, John Teeling and Jim Finn have agreed to lend the Company on an unsecured basis £200,000 (the "First Loan") and £100,000 (the "Second Loan") respectively (together, the "Loans"). It is intended that the Loans, which are non-interest bearing and have no term will be converted into new Clontarf ordinary shares at the next placing.

The Loans are related party transactions for the purposes of AIM Rule 13. The Directors (excluding John Teeling) consider, having consulted with the Company's nominated adviser Shore Capital & Corporate Limited ("SCC"), that the terms of First Loan are fair and reasonable insofar as the Company's shareholders are concerned. The Directors (excluding Jim Finn) consider, having consulted with SCC, that the terms of Second Loan are fair and reasonable insofar as the Company's shareholders are concerned.

The Hydrocarbon Exploration payment of £300,000 has been met through an unsecured loan of two years from Finanzas & Legal Corporativos S.A.C. PFI, an established Peruvian oil and gas financing group. The loan to Hydrocarbon has an interest rate of 10% with an option to convert into shares of Clontarf Energy at the same time and the same price of the next placing.

Enquiries:

Clontarf Energy Plc

John Teeling, Chairman                                                                               [phone]

Blythe Weigh Communications                                                                [phone]

Tim Blythe                                                                                                          [phone]

Halimah Hussain                                                                                              [phone]

Eleanor Parry                                                                                                     [phone]

Nominated Adviser and Joint Broker                                                     

Shore Capital

Pascal Keane/Toby Gibbs, Corporate Finance                                     [phone]             

Jerry Keen, Corporate Broking

Joint Broker

Optiva Securities Ltd

Jason Robertson                                                                                              [phone]

Jeremy King                                                                                                       [phone]

Pembroke Communications

David O'Siochain                                                                                             [phone]

www.clontarfenergy.com 

 

END

 

 

MSCGCGDRGSDBGXU