Further to the November 2019 EGM, and subsequent Regulatory News Statements, the directors of Petrel Resources plc wish to update shareholders on their understanding with the Tamraz Group on a way forward:
The Tamraz Group, of Roger Tamraz, Michel Fayad, and Said Mehraik, will maintain their current interest of circa 32,086,538 ordinary shares.
The High Court injunction over these shares will stay in place until all outstanding matters are resolved, to the satisfaction of the Court.
It has not been possible to proceed with the finalisation of a second tranche of 64,035,976 shares due to the changed circumstances, taking into account the state of markets generally in the light of COVID-19, as well as oil price volatility.
The Tamraz Group continues to work on possible investment proposals / deals to be presented to Petrel Resources plc. Should any of these proceed, it is envisaged that payment will be in the form of Petrel shares.
The Board continues to review Michel Fayad's position on the Board, and will make a further announcement in respect thereof in due course.
Separately, Petrel wishes to update shareholders on the Company's projects in Ghana and Ireland:
We are ready to initiate the Tano 2A work programme (as previously referred to in the Company's announcements), as soon as the signed Petroleum Agreement is ratified, and subject to securing the necessary funding.
Despite lower oil prices, in the Board's view, the Tano (and Cretaceous oil play generally in West Africa) remains an industry favourite.
Recent high-level official meetings have been productive. The Company understands that the new shareholders have helped the Tano 2A Operating Company (Pan Andean Resources (Ghana) Ltd.) to overcome any financial capacity concerns following a lower oil price and market capitalisation.
Petrel also notes the passing of insolvency legislation that may assist in the recovery of all of the original Tano 2A coordinates. There now appears to be a legal structure enabling the authorities to recover 529km2 of the original acreage Tano 2A acreage over which Petrel holds, with partners, a Petroleum Agreement, and which is now awaiting ratification.
Petrel continues as a 10% working interest partner with Woodside in Frontier Exploration Licence (FEL) 11/18, in the Irish Atlantic's Porcupine Basin.
Due to legislative uncertainty since 2017, exacerbated by the Taoiseach's public statements in September 2019 against the issue of new Atlantic oil exploration licences, Petrel has discontinued farm-out discussions with a gas super-major. Accordingly, the board reluctantly dropped our 100% owned and operated Frontier Exploration Licence (FEL) 3/14, despite multiple identified targets.
Similarly, the board decided not to apply to convert our prospective Licensing Option (LO) 16/24 into a Frontier Exploration Licence.