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UMC Energy PLC (~275)

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Monday 12 September, 2011

UMC Energy PLC

Exercise of Option

RNS Number : 0327O
UMC Energy PLC
12 September 2011
 



 

 

12 September 2011

 

 

 

UMC Energy Plc

("UMC" or the "Company")

 

Exercise of Option

 

 

Further to the announcement, in April this year, that UMC Energy had entered an option agreement (which is with non-related parties) to acquire a Papua New Guinea (PNG) company which had applied for Petroleum Prospecting Licences (PPLs) in that country, we wish to advise that UMC has now exercised its option.  As a result of exercising this option, the Company will acquire 100 per cent. of the issued capital of a BVI incorporated company, PNG Energy Ltd, which company's sole asset is its 100 per cent. holding in the PNG company, Gini Energy Ltd (Gini). Gini's sole asset is its holding of two off-shore PPLs, nos 374 and 375 and one on-shore PPL, no 378.

 

The consideration payable upon exercise of the option is the issue by UMC Energy of 240 million fully paid up new ordinary shares in the capital of the Company (Ordinary Shares) upon for which, after allotment, application will be made for the shares to be admitted to trading on AIM.  Following allotment, the Company will have 484,444,763 Ordinary Shares in issue.

 

The Company has retained consulting petroleum engineers to further examine and report on the presently available published geological data on the underlying areas of these licences and the results of these studies will be released when available.

 

The work expenditure commitments on the three PPLs in the first two years, totalling US$600,000, will be met from the Company's existing funding arrangements with Natasa Mining Ltd.  During the first year of the expenditure commitment programme, the Company will, upon receipt of the petroleum consultants' reports on past exploration carried out on the PPLs, decide on the most appropriate development options, including the possibility of seeking farm-in partners.

 

The transaction will not result in any changes to the composition of the Board of Directors of the Company.  Furthermore the transaction will not result in any change to the Company's other business activities, being the investment in and development of the Morondava uranium exploration project in Madagascar.

 

 

For further information:

 

Enquiries:

 

Chrisilios Kyriakou, Chief Executive Officer

UMC Energy Plc

Telephone:                                                                                +44(0) 20 7514 1480              

 

Angela Peace

Strand Hanson Limited

Telephone:                                                                                +44 (0) 20 7409 3494              

 

Philip Haydn-Slater/Paul Dudley

HD Capital Partners LLP

Telephone:                                                                                +44(0) 20 3551 4870              

 

 

 

 


This information is provided by RNS
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