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Monday 13 October, 2014

New World Oil & Gas

Board and Management Changes and Company Update

RNS Number : 0975U
New World Oil & Gas
13 October 2014
 



 

New World Oil and Gas Plc/Index: AIM/Epic: NEW/ Sector: Oil & Gas

 

13 October 2014

 

New World Oil and Gas Plc ('New World' or 'the Company')

Board and Management Changes and Company Update

 

New World Oil and Gas Plc ("NWOG"), an oil and gas exploration and development company, provides the following update on the matters referred to in its announcement of 8 October 2014.

 

The Company today announces the resignation of William Kelleher as Chairman and Chief Executive Officer of New World. Mr. Kelleher was one of the founders of New World and has been a key member of the New World team since its inception. Mr. Kelleher, a Petroleum Engineer by trade, has also led the technical side of New World's operations.

 

At this transitional period in the Company's history, Mr. Kelleher has decided to pursue other exciting opportunities, where he can bring his talents and experience to bear. At the Company's request, he has agreed to serve as a technical advisor and consultant to the Board for a period of 6 months on the basis set out below.

 

The Board wishes to thank Bill for his hard work, dedication and service to the Company and wishes him great success in his future endeavors.

 

The Board has decided to split the role of Chairman and CEO.  Christopher Einchcomb, a non-executive Director of the Company, will assume the role of acting non-executive Chairman and Peter Sztyk, Executive Director, will become CEO.  Further Board appointments will be subject to a final decision on the NP subscription and the future direction of the Company.

 

In order to reduce running costs, the Board of New World has approved the recommendation of the Remuneration Committee to reduce the salaries of all executive and non-executive directors and the consultancy fee in respect of Mr Kelleher's consulting firm Hydrocarbon Technologies Limited ("Consultant") by 50% effective from 1 November. Notice of termination of the agreement with the Consultant has been given in accordance with the existing contractual terms to terminate 1 May 2015. Furthermore, 50% of future executive directors salaries and the Consultant's remuneration will be used to re-pay outstanding director loans to the Company which were due 30 September 2014 and which as at that date were in aggregate $742,717.27 including accrued interest.  The Company has reserved the right to demand repayment of the loans at any time.

 

The extension of the due date of the loans from 30 September 2014 to an on-demand basis is a variation of the terms of the director loans and is therefore being treated as a related party transaction for the purposes of the AIM Rules. The Independent Directors (being Messrs Stephen Polakoff, Christopher Einchcomb and Fred Hodder) believe that this variation of terms does not prejudice the Company's position as a creditor and provides a basis for the repayment of the loans and accordingly consider, having consulted with its Nominated Adviser, that the variation is fair and reasonable insofar as shareholders are concerned.

 

The Board is actively engaging in discussions with Neil Petroleum (NP) in respect of NP's investment in the Company and will update the market accordingly.

 

Newly appointed non-executive Chairman Chris Einchcomb stated, "The Board of New World remains committed to securing the future of the Company and maximizing the value to shareholders and believes the actions taken above are important steps to achieving this."

 

For further information please visit www.nwoilgas.com or contact:

 

Enquiries:

Georges Sztyk

New World Oil and Gas Plc

Tel: +1514 9612247

Peter Sztyk

 

Felicity Geidt

New World Oil and Gas Plc

 

Beaumont Cornish Limited

Tel: +19172157122

 

Tel: +44 (0) 20 7628 3396

Roland Cornish

Beaumont Cornish Limited

Tel: +44 (0) 20 7628 3396

 




Hugo de Salis

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

Lottie Brocklehurst

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

Frank Buhagiar

St Brides Media & Finance Ltd

Tel: +44 (0) 20 7236 1177

 

 

 

 


This information is provided by RNS
The company news service from the London Stock Exchange
 
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