Statement re CONFIRMATION OF PRELIMINARY APPROA...
Immediate Release 23 March 2010
GULFSANDS PETROLEUM PLC
CONFIRMATION OF PRELIMINARY APPROACH OFFER PRICE
London, 23(rd) March, 2010
Following the announcement on 19 March 2010, the board of directors (the
"Board") of Gulfsands Petroleum plc (AIM: GPX and "Gulfsands" or "the Company")
clarifies that the preliminary approach received on 18 March regarding a
possible offer for the Company was at 315 pence per share for the entire issued
and to be issued share capital of Gulfsands.
As stated on 19 March 2010, the Board is unanimously of the view that the
proposal is wholly inadequate, highly conditional and materially undervalues the
Company.
In accordance with Note 7 on Rule 2.4 of the City Code on Takeovers and Mergers,
Gulfsands confirms that this announcement has not been made with the agreement
or approval of the potential offeror. There can be no certainty that an offer
will be made nor as to the terms on which any offer might be made.
For more information please contact:
Gulfsands Petroleum (London) +44 (0)20 7434 6060
Andrew West, Chairman
Andrew Rose, Chief Financial Officer
Buchanan Communications Limited (London) +44 (0)20 7466 5000
Bobby Morse +44 (0)7802 875227
Ben Romney
Chris McMahon
RBC Capital Markets (London) +44 (0)20 7653 4000
Josh Critchley
Tim Chapman
Matthew Coakes
Martin Eales
ABOUT GULFSANDS:
Gulfsands is listed on the AIM market of the London Stock Exchange.
Syria
Gulfsands owns a 50% working interest and is operator of Block 26 in North East
Syria. The Khurbet East oil field was discovered in June 2007 and commenced
commercial production within 13 months of the discovery. This field is producing
at an average gross production rate of approximately 17,000 barrels of oil per
day through an early production facility. Block 26 covers approximately 8,250
square kilometres and encompasses existing fields which currently produce over
100,000 barrels of oil per day, and are operated mainly by the Syrian Petroleum
Company. The current exploration license expires in August 2010 and is
extendable for a further two years. Gulfsands' working interest 2P reserves in
Syria at 31 December 2008 were 35.2 mmbbls.
Iraq
Gulfsands signed a Memorandum of Understanding in January 2005 with the Ministry
of Oil in Iraq for the Maysan Gas Project in Southern Iraq, following completion
of a feasibility study on the project, and is negotiating details of a
definitive contract for this regionally important development. The project will
gather, process and transmit natural gas that is currently a waste by-product of
oil production and as a result of the present practice of gas flaring,
contributes to significant environmental damage in the region. The Company is
actively engaged in discussions with respect to financing and potential equity
partners. Gulfsands has no reserves in Iraq.
Gulf of Mexico, USA
The Company owns interests in 44 blocks comprising approximately 138,000 gross
acres offshore Texas and Louisiana, which include 30 producing oil and gas
fields with proved and probable working interest reserves at 31 December 2008 of
5.1 mmboe.
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.
More information can be found on the Company's website www.gulfsands.com
Dealing Disclosure Requirements
Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if any
person is, or becomes, "interested" (directly or indirectly) in 1% or more of
any class of "relevant securities" of Gulfsands, all "dealings" in any "relevant
securities" of that company (including by means of an option in respect of, or a
derivative referenced to, any such "relevant securities") must be publicly
disclosed by no later than 3.30 p.m. (London time) on the London business day
following the date of the relevant transaction. This requirement will continue
until the date on which the offer becomes, or is declared, unconditional as to
acceptances, lapses or is otherwise withdrawn or on which the "offer period"
otherwise ends. If two or more persons act together pursuant to an agreement or
understanding, whether formal or informal, to acquire an "interest" in "relevant
securities" of Gulfsands, they will be deemed to be a single person for the
purpose of Rule 8.3.
Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant
securities" of Gulfsands by the potential offeror or by Gulfsands, or by any of
their respective "associates", must be disclosed by no later than 12.00 noon
(London time) on the London business day following the date of the relevant
transaction.
A disclosure table, giving details of the companies in whose "relevant
securities" "dealings" should be disclosed, and the number of such securities in
issue, can be found on the Takeover Panel's website at
www.thetakeoverpanel.org.uk.
"Interests in securities" arise, in summary, when a person has long economic
exposure, whether conditional or absolute, to changes in the price of
securities. In particular, a person will be treated as having an "interest" by
virtue of the ownership or control of securities, or by virtue of any option in
respect of, or derivative referenced to, securities.
Terms in quotation marks are defined in the Code, which can also be found on the
Panel's website. If you are in any doubt as to whether or not you are required
to disclose a "dealing" under Rule 8, you should consult the Panel.
[HUG#1396387]
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