Information  X 
Enter a valid email address

Polo Resources Ltd (POL)

  Print      Mail a friend

Wednesday 17 July, 2019

Polo Resources Ltd

HIBISCUS PETROLEUM - INVESTMENT UPDATE

RNS Number : 8741F
Polo Resources Limited
17 July 2019
 

This announcement contains inside information as defined in Article 7 of the EU Market Abuse Regulation No 596/2014 and has been announced in accordance with the Company's obligations under Article 17 of that Regulation.

 

17  July 2019

 

 

 

Polo Resources Limited

 

("Polo" or the "Company")

 

 

HIBISCUS PETROLEUM - INVESTMENT UPDATE

 

Polo Resources Limited (AIM: POL), the multi-sector investment company with interests in oil, gold, coal, copper, phosphate, lithium, iron and vanadium, notes that its 8.75% investee company Hibiscus Petroleum Berhad ("Hibiscus") has announced that its indirect whollyowned subsidiary, Anasuria Hibiscus UK Limited ("AHUK"), has entered into a conditional nonbinding term sheet to acquire License P2366, from United Oil & Gas PLC ("United") and Swift Exploration Limited ("Swift") ("collectively referred to as "Sellers") for a total cash consideration of up to USD5 million.

 

The Blocks are located offshore in the United Kingdom sector of the North Sea, approximately 250km northeast of Aberdeen. The Blocks include the Crown Discovery, which based on information provided by United, consists of 2C contingent resources of 8 million barrels of oil and 6 billion cubic feet of associated gas. The Blocks are located 12km southeast of Marigold field, which together with the Sunflower field, was acquired by AHUK in October 2018.

 

United and Swift were awarded License P2366 as part of the United Kingdom's Oil and Gas Authority's ("OGA") 30th Licencing Round, in August 2018, and they each hold 95% and 5% participating interest respectively.

 

The payment terms of the proposed acquisition would commence with a nonrefundable payment of USD1 million to the Sellers upon completion of the Sale and Purchase Agreement ("SPA"). Subject to further milestones being achieved post SPA completion, an additional sum of up to USD3 million will be paid before the end of 2020. A further USD1 million will be paid once the field is on production. In the unlikely event that AHUK decides not to make the postcompletion payments, Licence P2366 will return to the Sellers. The proposed consideration was arrived at on a similar basis to the consideration paid for the Marigold and Sunflower fields as they are seen as being additive to the existing Marigold and Sunflower development.

 

The proposed acquisition of License P2366 is subject to, amongst others, completion of satisfactory due diligence and receipt of OGA's approval.

 

In addition to its 50% operated interest in Licence P198 blocks 15/13a and 15/13b containing the Marigold and Sunflower oilfields respectively, AHUK also holds 50% jointoperating interests in the P013 licence consisting of the Teal, Teal South and Guillemot A fields, as well as 19.3% nonoperating interest in the P185 licence consisting of the Cook field. The Teal, Teal South, Guillemot A and Cook fields which produce oil and gas to the Anasuria Floating production storage and offloading facility ("Anasuria FPSO") are collectively known as the Anasuria Cluster. The Anasuria Cluster is located offshore in the United Kingdom sector of North Sea.

 

About United Oil & Gas PLC

 

United Oil & Gas PLC is an independent oil & gas startup established in 2015. It is listed on the AIM market of the London Stock Exchange.

 

About Swift Exploration Limited

 

Swift Exploration Limited is a private oil and gas exploration company formed in 2003. It focuses on developing exploration and production opportunities in the North Sea and the UK onshore for farmout/ sale.

 

The full details of this announcement can be found at http://www.hibiscuspetroleum.com/.

 

For further information, please contact: 

  Polo Resources Limited

  - Kudzayi Denenga, Investor Relations

+27 (0) 787 312 919



  Allenby Capital Limited (Nominated adviser & broker)

  - John Depasquale

+44 (0)20 3328 5657

 



 

About the Company

Polo Resources Limited is a multi-sector investment company focused on investing in undervalued companies and projects with strong fundamentals and attractive growth prospects. For complete details on Polo, please refer to: www.poloresources.com.

 


This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact [email protected] or visit www.rns.com.
 
END
 
 
UPDMMGMNFNMGLZM

a d v e r t i s e m e n t