Madagascar Oil Limited Strategic Process and Financing Update (2025Y)
07 Septembre 2015 - 8:00AM
UK Regulatory
TIDMMOIL
RNS Number : 2025Y
Madagascar Oil Limited
07 September 2015
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR
INDIRECTLY, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA OR
JAPAN
7 September 2015
MADAGASCAR OIL LIMITED
("Madagascar Oil" or the "Company")
Strategic Process and Financing Update
Madagascar Oil (AIM: MOIL), which has over 1.7 billion barrels
of contingent resources in the Tsimiroro field, provides the
following update on its strategic partnering process and financing
initiatives.
For the past two months, the Company has been working closely
with its strategic advisor, Jefferies International Limited
("Jefferies"), to consider the Company's strategic options
regarding the sourcing of a strategic partner(s) for the Tsimiroro
development. A comprehensive Information Memorandum has now been
finalized and a technical data-room has been opened with the view
to attracting the optimal strategic partner(s) to assist the
Company to fund and deliver the initial phases of its Tsimiroro
development. Interested parties should contact the Company or
Jefferies on the contact details set out below.
The Company's process to identify a potential strategic
partner(s) (the "Jefferies Process") is making steady progress,
despite the current adverse market conditions, with interest being
expressed by a number of credible parties. A clear timetable has
been established and the process is currently expected to run
through to the end of 2015, with the target of finalizing any
transaction by the end of Q1 2016.
In parallel, the Company continues to progress discussions with
investors to secure new financing, including, inter alia, proposals
from certain of its existing major shareholders, to provide the
requisite working capital pending completion of the Jefferies
Process, which may take the form of debt, equity or a combination
of both, (the "Financing").
On 30 June 2015, the Company announced that, as a continuation
of its process seeking to identify and secure a potential strategic
partner(s), it had entered into a US$5 million working capital
facility (the "Outrider Facility") with a company connected to
Outrider Management LLC, an existing substantial shareholder of the
Company. The Outrider Facility has been fully drawn down and is
scheduled to become repayable, including accrued interest, on 6
October 2015. It is expected that repayment or extension of the
existing Outrider Facility will be addressed as part of the
Financing.
A further update(s) will be provided in due course, as
appropriate.
Chief Executive Officer, Robert Estill, commented:
"We are making steady progress in our search to secure a
potential strategic partner(s), despite the prevailing difficult
market conditions, and are very pleased with the level of interest
being shown by a number of large international companies. The size
of our resource base in Madagascar, the recent approval of our
Development Plan for the Tsimiroro Block and the long term nature
of the Tsimiroro licence (at least 25 years from April 2015), is
attracting companies of real scale and we will continue to work
closely with Jefferies to secure a transaction which adds value for
all of our shareholders. In the meantime, the Company will seek to
secure appropriate Intermediate Financing in the near term and is
currently considering alternative funding options, including the
proposals from certain of our existing major shareholders".
Contact Information:
Madagascar Oil Limited
Robert Estill - Chief Executive
Officer
Stewart Ahmed - Chief Operating
Officer
Gordon Stein - Chief Financial +44 (0) 20 3356
Officer 2731
Strand Hanson Limited - Nominated
& Financial Adviser
Stuart Faulkner
Angela Hallett +44 (0) 20 7409
James Dance 3494
Jefferies International Limited +44 (0) 20 7029
- Strategic Advisor 8102
Richard Kent +44 (0) 20 7029
Nima Mehdian 8105
VSA Capital Limited - Joint broker
Andrew Monk
Andrew Raca +44 (0) 20 3005
Justin McKeegan 5000
Mirabaud Securities LLP - Joint
broker +44 (0) 20 7878
Rory Scott 3360
Camaraco - PR
Billy Clegg +44 (0) 20 3757
Georgia Mann 4980
Notes to Editors:
Madagascar Oil (AIM: MOIL) is the leading independent oil and
gas company in Madagascar and is quoted on the AIM market of the
London Stock Exchange.
The Company has a variety of exploration and development
opportunities, through its five licence interests in western
Madagascar, with significant upside potential from the Tsimiroro
heavy oil field, which includes over 1.7 billion barrels of
contingent resources, and low risk exploration prospectivity from
its four exploration licences.
Madagascar Oil has a strong track record of operational success
in country and, in April 2015, received Field Development Plan
approval from the Malagasy Government, securing the first-ever
25-year development licence to be issued in Madagascar, for the
Tsimiroro Block 3104, thereby moving the Company's flagship asset
from the exploration to the development phase. The 25-year licence
period may be extended to up to 50 years if the field is still
commercial beyond 25 years.
The Company is currently in the process of identifying and
securing a strategic partner(s) with Jefferies International
Limited to assist the Company with the development and funding of
the world class Tsimiroro field. The Company is focussed on
delivering profitable future development and significant long term
value to its shareholders and the people of Madagascar.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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