Gasol plc Further re Option to Buy African Power Generation (1267M)

TIDMGAS

RNS Number : 1267M

Gasol plc

21 August 2013

Gasol plc

('Gasol' or the 'Company')

Gasol extends option to acquire African Power Generation Limited

Gasol (AIM: GAS) the West African energy development company, today announces that it has extended the period for exercise of the option agreement ('the Option Agreement') to purchase the entire issued share capital of African Power Generation Limited ('AfGen') from African Gas Development Corporation Limited ('Afgas') by 6 months to 24 February 2014.

All other terms of the Option Agreement remain unchanged and are as set out in the Company's original announcement dated 28 August 2012 (copy attached as an Appendix to this announcement).

The Directors of Gasol consider, having consulted with Panmure Gordon (UK) Limited, Gasol's Nominated Adviser, that the terms of the Transaction are fair and reasonable insofar as shareholders are concerned.

- Ends -

Enquiries

 
 Gasol plc 
  Alan Buxton, Chief Operating    +44 (0) 20 7290 
  Officer                          3300 
 Panmure Gordon (UK) Limited 
  Dominic Morley (Corporate 
  Finance) 
  Callum Stewart (Corporate 
  Finance) 
  Adam Pollock (Corporate         +44 (0) 20 7886 
  Broking)                         2500 
                                  +44 (0) 7768 537 
 Yellow Jersey PR Limited          739 
  Dominic Barretto                 +44 (0) 7799 003 
  Kelsey Traynor                   220

Notes to Editors:

About Gasol plc

Gasol plc's strategy is to provide African gas for the next generation. Power stations in West Africa currently operate predominantly on liquid fuels such as diesel, light crude and jet fuel, but many of these plants are also capable of using gas. Gasol will initially supply these customers with gas from regasified Liquefied Natural Gas ("LNG"), which can provide significant cost savings in the order of 20 to 30 per cent. This involves the delivery of LNG to leased Floating Storage and Regasification Facilities, which will be positioned in Cotonou harbour, Benin and will supply the regasified LNG into the West African Gas Pipeline. The West African Gas Pipeline is a 678km gas pipeline involving an investment of over US$1 billion, built to transport gas from Nigeria to Benin, Togo and Ghana which has been operational since March 2011, but today operates at significantly less than full capacity . Once there is sufficient regional demand for gas, Gasol aims to develop captive gas reserves in offshore Nigeria and will supply this gas through the West African Gas Pipeline. This pipeline gas will be cheaper and therefore displace the LNG derived gas, resulting in further savings for customers.

Gasol's shares have been listed on London Stock Exchange's AIM since 2005 with the ticker code "GAS". Further information on the Company is available at www.gasolplc.com.

Appendix:

RNS Number : 8037K

Gasol plc

28 August 2012

Gasol plc

('Gasol' or the 'Company')

Gasol agrees option to acquire African Power Generation Limited

Gasol (AIM: GAS) the West African energy development company, today announces that it has entered into an option agreement ('the Option Agreement') to purchase the entire issued share capital of African Power Generation Limited ('AfGen') from African Gas Development Corporation Limited ('Afgas').

Prior to commercialisation of its own gas resources, Gasol aims to develop gas markets in West Africa through liquefied natural gas ('LNG') import projects. These projects involve Gasol acquiring LNG and arranging for it to be shipped to a target market where it can be stored and regasified in Floating Storage and Regasification Units ('FSRUs'). The regasified gas can then be delivered to the West Africa Gas Pipeline for use in West Africa or delivered directly to power plants.

AfGen has had extensive negotiations on potential projects in West Africa and elsewhere, and is in advanced discussions on three LNG import projects in the region. The agreement signed today gives Gasol the option to access an existing project pipeline as opposed to developing its own projects from scratch.

Gasol has entered into the Option Agreement with AfGen and Afgas, a substantial shareholder of the Company, to purchase the entire issued share capital of AfGen (the 'Option'). The Option expires 12 months after the signature of the Option Agreement. Entry into the Option Agreement is at no cost to Gasol. The cost of exercising the Option will be 75% of fair value, as determined by third party experts at the time of exercise, and will be settled through the issuance of Gasol shares.

As part of the Option Agreement, Gasol has agreed to fund AfGen's working capital budget; provided that unless agreed by Gasol, Gasol shall not be required to lend in excess of (i) US$500,000 in any calendar month or (ii) US$5,000,000 in aggregate. The loan shall carry interest at the rate of 10% per annum calculated from the date of disbursement to the date of repayment. The interest shall accrue and shall be capitalised annually to form part of the loan. The loan shall be repayable on demand by Gasol and shall automatically and immediately become repayable in full (together with all accrued but unpaid interest thereon) upon the Option lapsing. Repayment of the loan is guaranteed by Afgas. The provision of the loan (the 'Transaction') is a related party transaction, pursuant to Rule 13 of the AIM Rules for Companies.

Commenting on the agreement Gasol's Chief Operating Officer, Alan Buxton, said: "This is an exciting first step in the delivery of the Company's strategy, which was outlined earlier in the year. Today's agreement will potentially enable us to generate substantial future revenuesthat will support Gasol's further corporate development."

This information is provided by RNS

The company news service from the London Stock Exchange

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