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Tuesday 11 November, 2014

Waterford Fin&Inv Ld

Waterford requisitions Gulfsands AGM

RNS Number : 7159W
Waterford Finance & Inv. Ld
11 November 2014
 

Waterford Finance & Investment Limited
 
 
Tel:         01481 720581                                                                                          Waterford Group
Fax:        01481 712634

 

11 November 2014

 

We, Waterford Finance & Investment Limited ("Waterford"), which is interested in 26.51 per cent of the current issued share capital of Gulfsands Petroleum plc, ("Gulfsands" or the "Company") have submitted a requisition calling for a general meeting of Gulfsands to be convened and urge our fellow investors in the Company to vote in favour of the removal of both Mr. Mahdi Sajjad and Mr. Kenneth Judge as directors of Gulfsands.

 

Waterford has been one of the largest investors in Gulfsands since 2011 and we are deeply frustrated with the performance of the Company in recent years.

 

We are concerned that under current management, Gulfsands has lost direction; failed to build a viable business outside of Syria; appears to us to have recklessly spent valuable cash reserves on assets that have yielded no commercial result and that have not created any value; and, we fear, driven Gulfsands to the brink of collapse. The Company's balance sheet has weakened considerably, as according to Waterford estimates, during the last two years Gulfsands has spent  approximately $100 million without creating any significant shareholder value. It is far from clear to us whether Gulfsands will have sufficient funds to bring its Syrian assets back on stream if and when the sanctions are lifted.

 

During this prolonged period of underperformance and destruction of shareholder value, the Directors of Gulfsands have chosen to reward themselves with what we calculate to be over $5.3 million in total remuneration, including bonuses, for the financial years ended 2012 and 2013. This  level of remuneration  is higher than peer companies and is completely unjustifiable given the financial performance of the Company and the failure of the Board to deliver shareholder value.

 

In particular, we consider that Mr Mahdi Sajjad, as CEO, and Mr Kenneth Judge, as Commercial Director, should take primary responsibility for the recent failings of the Company's current management. They have lost the confidence of Waterford and, we believe, other investors in the Company.

 

We strongly believe that this change in the Company's management is essential to stop any further destruction of shareholder value and to put in place a viable strategy for the Company going forward.

 

Therefore, we ask for the support of our fellow investors in removing both Mr. Mahdi Sajjad and Mr. Kenneth Judge as directors of the Company.

 

In conclusion, we would like to emphasize that, as a significant long-term investor in Gulfsands, our interests are fully aligned with interests of all investors in the Company.

 

Yours faithfully

 

Waterford Finance & Investment Limited

 

For enquiries please contact:

Paul Conway - Director


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