16 January 2025
Pennpetro Energy PLC
("PPP" or
"Pennpetro")
Placing and Corporate
Update
Further to the announcement of 8 January 2025 and
following a number of significant developments since this date, the
Board of Pennpetro Energy PLC (LSE: PPP) has decided not to proceed
at this time with the proposed placing of up to 8 million new
shares in the Company via Dutch Auction (the "Placing"). In taking
this decision the Board was mindful of the obvious need to ensure
that all relevant, current and material information regarding the
Company has been disclosed prior to the closing of any
fundraise.
A number of these recent developments remain under
review by the Board, in terms of accuracy, validity and their
impact on the Company, and certain additional information is being
sought by the Board. However, whilst this review continues, the
Company believes that is in the clear best interest of all
stakeholders for summary details of these developments to be
disclosed.
● In the week beginning
January 13 2025, the Board was made aware that the amount of debt
claims against the Company was significantly higher than had
previously been disclosed. In particular, the amount believed to be
owed to US counter-parties has risen to over US600,000 against the
previously disclosed U$300,000. It is uncertain whether or not this
is the final extent of monies owed and investigations in regards to
this are ongoing.
● On 13 January 2025,
the Board was informed that PPP's Company Secretary had received a
requisition notice from a shareholder group proposing certain
changes to the Board. The Company is seeking legal advice as to the
validity of the requisition notice and a further announcement will
be made in due course.
● The Board has been
made aware of a filing at Companies House on 7 January 2025 of a
Progress Report by
liquidators to Resources Bonds 11 Limited , a bond issued by the
Company in 2016 which went into liquidation in January 2023.
Inter-alia, this Report makes direct references to 'breaches by the directors of their statutory
and fiduciary duties, leading to various claims against the
directors. Solicitors have been instructed and initial letters
before action have been issued". Whilst the Board is
obviously unable to make any comment on the accuracy or background
to these statements, the directors referred herein are both past
and present Directors of the Company.
● The Board has
commenced recovery action in relation to unauthorised and
preference payments that have been identified.
● The Board can confirm
the date for the AGM which has been set for 17 February 2025 at
11.00 in London .
● Finally, the Company
has signed a Non-Disclosure Agreement with a recently introduced,
unconnected, potential investor. Whilst discussion remain at
an early-stage, this party is looking to participate as a
cornerstone shareholder in the Company and to widen the base of
PPP's activities within the oil exploration
and production space.
-ENDS
This announcement contains inside information within
the meaning of Article 7(1) of (i) Regulation (EU) No 596/2014 of
the European Parliament and of the Council of 16 April 2014, as
amended (the "EU Market Abuse Regulation") and (ii) the EU Market
Abuse Regulation as it forms part of United Kingdom domestic law by
virtue of the European Union (Withdrawal) Act 2018.
