Sequa Petroleum N.V. plans to cease its activities in Norway
09 February 2017 - 11:00PM
Sequa Petroleum N.V. ("Sequa" or
the "Company") today announces that following a strategic review it
plans to cease its E&P activity in Norway conducted
through Tellus Petroleum AS, and focus on acquiring assets
elsewhere in Europe. Pursuant to local statutory requirements,
consultation procedures with Tellus employee representatives have
been initiated and other required steps will follow in due
course.
Further to its press release of 23
December 2016 in relation to the Sequa Petroleum N.V. USD
300,000,000 5.00 per cent Convertible Bonds due 2020 of which USD
204,400,000 in principal amount remain outstanding, ISIN:
XS1220076779 ("Bonds"), the Q4 2016 USD $5.11M coupon is still
outstanding, however the Company understands that the required
majority of the Bonds is now held by its main shareholder (Sapinda
and affiliates), who are supportive of restructuring the Company's
debt. The cessation of business in Norway constitutes under
article 10 (g) of the Terms and Conditions of the Bonds a potential
default of the Bonds, which the Company also expects to be resolved
with Sapinda's support.
By way of update on the
convertible loan facilities totalling USD 62.5M from Sapinda Invest
Sarl and Sapinda Asia Limited ("Convertible Loan"), since 23
December a further USD 1,527,640 was provided meaning a total of
USD 5,118,521 has now been received since 30 June 2016. The amounts
received did not match the timing or quantum requested by the
Company, however the Company currently expects to be able to draw
sufficient further funds to enable it to continue to trade whilst
the Company's debt is being restructured and the process to
cease activity in Norway and liquidate Tellus assets is
completed.
The net funds expected from the
repatriation of liquidated assets together with debt
restructuring will enable the Company to progress selected high
quality acquisition targets of production and development assets
elsewhere.
Effective today, Jelte Bosma will
relinquish his role of director of the Management
Board, to pursue additional interests outside the oil &
gas sector. Mr Bosma will continue as an employee of the Company
with a focus on business development.
Contacts:
Jacob Broekhuijsen, Chief Executive Officer
+44(0)203-728-4450 or info@sequa-petroleum.com
This
announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Sequa Petroleum NV via Globenewswire
Sequa Petroleum NV (EU:MLSEQ)
Historical Stock Chart
From Apr 2024 to May 2024
Sequa Petroleum NV (EU:MLSEQ)
Historical Stock Chart
From May 2023 to May 2024
