PETROFAC AWARDED US$1.65 BILLION CONTRACTS FOR ABU DHABI MEGA PROJECT
Petrofac Emirates has been awarded two contracts, together worth around US$1.65 billion with Abu Dhabi National Oil Company (ADNOC) in the United Arab Emirates.
The engineering, procurement (including novated long lead items), construction, transportation, offshore installation and commissioning contracts are for ADNOC's Dalma Gas Development Project. The work scope encompasses offshore packages at Arzanah island and surrounding offshore fields, located around 140 km off the north-west coast of the Emirate of Abu Dhabi.
The first package, valued at US$1.065 billion, is for gas processing facilities at Arzanah island. Under the terms of the 33-month lump-sum contract awarded to Petrofac, the scope of work includes inlet facilities with gas processing and compression units, power generation units, utilities and other associated infrastructure.
For the second package, valued at US$591 million, Petrofac is leading a Joint Venture with SapuraKencana HL Sdn. Bhd. Abu Dhabi. Under the terms of the 30-month lump-sum contract, the scope of work includes three new well-head platforms, removal and replacement of an existing topside, new pipelines, subsea umbilicals, composite and fibre optic cables.
The Dalma project is a key part of the Ghasha ultra-sour gas concession which is central to ADNOC's strategic objective of enabling gas self-sufficiency for the UAE.
George Salibi, Chief Operating Officer - Engineering & Construction, commented: "Petrofac has a strong track record in the UAE, with a presence here since 1991 and around 3,000 staff in country. We are fully committed to supporting continued and sustainable investment in Abu Dhabi's oil and gas industry through our strategic focus on maximising local delivery, and are pleased that our approach will generate substantial In-Country Value for the local economy. These latest contract awards build on our existing relationship with ADNOC Group companies and we look forward to delivering this mega project in a safe, successful and sustainable manner."
Established in the UAE in 1991, with operational centres in Abu Dhabi and Sharjah, Petrofac has executed 11 major EPC projects in-country to date. Recent projects include the Upper Zakum UZ750 project, Qusahwira Field Development Phase II, the Satah Al Razboot (SARB) Package 3, the contract for expansion of compression facilities at the Bab field and development of the Bab Habshan-1 project.
Ends
Tullow Oil plc (Tullow) announces that the Marina-1 exploration well, drilled on Z-38 licence offshore Peru, has reached Total Depth and has not encountered significant hydrocarbons. The well tested the La Cruz and Mal Pelo formations where minor gas shows were encountered however there were no indications of hydrocarbons in the primary targets in the Tumbes formation.
The Stena Forth drillship drilled the Marina-1 well to a Total Depth of 3,022 metres in 362 metres of water and the well will now be plugged and abandoned.
Karoon Energy is the operator of the Marina-1 well through its wholly owned subsidiary, KEI (Peru Z‐38) Sucursal del Peru and has a 40% operating equity interest. Tullow Oil holds a 35% interest with Pitkin Petroleum holding the remaining 25%.
Mark MacFarlane, Chief Operating Officer, commented today:
“This is the first ever well in the deep-water section of the under-explored Tumbes basin. We will now integrate the important well information with the seismic data that we are currently reprocessing and update our prospect inventory for blocks Z-38 and Z-64. Tullow is building an extensive exploration position in Peru and, while this result is not what we had hoped for, we remain positive about Peru’s wider offshore exploration potential.”
ABERDEEN, Scotland (Reuters) - Total Chief Patrick Pouyanne dismissed the idea it might buy its partner in East Africa and Guyana, Tullow Oil, whose share price slumped to 19-year lows in December over a string of bad news, stoking takeover speculation.
Total is a partner in all growth markets for Tullow Oil whose market capitalisation shrank to around 633 million pounds as of Wednesday from 3.28 billion pounds in September. It is slashing its workforce and restructuring its portfolio.
Amid industry speculation about a potential Tullow takeover target, Pouyanne told Reuters when asked whether Total might buy Tullow: "Stop dreaming... No".
As of late 2019, Tullow was saddled with $2.8 billion in debt, a hangover from the last oil price crash which saw Brent crude futures plummet to below $30 a barrel in 2016.
High debts can make buying assets a more attractive option than a corporate sale.
Offshore Guyana, Tullow owns 60% and Total 25% of the Orinduik block, estimated to hold around 5.1 billion barrels of oil equivalent. Total also holds 25% in the Kanuku block, adjacent to Orinduik, in which Tullow holds 37.5%.
While two of Tullow's previous wells in Orinduik produced heavy oil, calling into question the quality of the reservoir, other wells targeting deeper layers have produced lighter oil - reviving hopes for the commerciability of wells targeting the so-called Upper Cretaceous.
Pouyanne said he expected two or three wells to be drilled offshore Guyana this year. Total, Tullow and their Orinduik partner Eco are due to meet this month and discuss next steps for their drilling off Guyana.
In Uganda and Kenya, Total and Tullow have partnered to bring the countries' first oil projects onstream, but both projects have hit snags.
Onshore Uganda, a deal for Tullow to sell a chunk of its stake to Total, fell through in August due to tax disputes with the government.
Uganda's government said in December it had settled the dispute with the companies, but they have not yet confirmed any such deal.
Pouyanne told Reuters discussions were still ongoing, but that Tullow's "financial issues" must also be dealt with.
In Kenya, Tullow and Total aim to reduce their stakes with a joint sale that could see Tullow exit completely amid uncertainty over the project's launch, banking and industry sources said.
Tullow declined to comment.
Started 20 January,2020.
For Mention - Case Started 01/11/2019 09:58
For Pre - Trial Review 16/12/2019 09:59
For Trial - Case Started 20/01/2020 10:34
For Trial - Case adjourned until 11:15 20/01/2020 10:53
For Trial - Resume 20/01/2020 12:03
For Trial - Case adjourned until 14:00 20/01/2020 12:27
For Trial - Legal Submissions 20/01/2020 15:05
Trial (Part Heard) - Resume 21/01/2020 10:13
RNS Number : 3737Y
Petrofac Limited
31 December 2019
Press Release
31 December 2019
PETROFAC SECURES US$130 MILLION IN PDO AWARDS
Petrofac announces today a new contract and the award of an additional scope of work with Petroleum Development Oman (PDO), with a combined value of approximately US$130 million.
The new contract award, under a 10-year Framework Agreement signed in 2017 with PDO, is an Engineering, Procurement and Construction Management (EPCM) services contract for the Mabrouk North East Development Project in Oman.
The full field development of Mabrouk North East field is planned to be executed in a phased approach. The 34-month project scope awarded involves the development of 16 gas producing wells and export of the production to the Saih Rawl Central Processing Plant. The project will be integrated with the Mabrouk North East Line Pipe Procurement Project, which was awarded to Petrofac in June 2019.
The other scope of work awarded is to provide further services for PDO's Yibal Khuff Project. This 20-month contract includes detailed Engineering, Procurement, and support for Construction and Commissioning of nine additional wells to improve overall plant production, and laying of gas pipeline from Yibal "A" to the main processing facility.
The Yibal Khuff Project, originally awarded to Petrofac in June 2015, is already in an advanced phase of construction and pre-commissioning, and the delivery of additional wells is to be synchronised for overall readiness.
Elie Lahoud, Group Managing Director, Engineering & Construction said: "This latest project award under the long-term framework agreement with PDO for Mabrouk North East, and additional scope of work for the Yibal Khuff Project, both further underpin our significant track record and commitment to delivering value in Oman. Our focus will remain on safe operations and maximising in-country value through the continued development of local workforce competence and strong supply chain partnerships."
I Bought a 5000 tranche at 379.524p and a 2943 tranche at 378.6985p
Petrofac, in a joint venture (JV) with the State Oil Company of the Republic of Azerbaijan (SOCAR), has secured a Project Management Services contract to support BP’s operations in Azerbaijan and Georgia.
The three-year contract will support both onshore and offshore activity for BP operated projects in the Caspian Sea area including Azeri-Chirag-Gunashli (ACG), Shah Deniz, Baku-Tbilisi-Ceyhan (BTC), South Caucasus Pipeline (SCP) and Western Route Export Pipeline (WREP).
Mani Rajapathy, Managing Director, Petrofac EPS East, commented:
"We continue to expand our service offering in the region with our key partner SOCAR. Petrofac has been active in Azerbaijan for over 15 years, providing skills development opportunities and services across the country’s oil and gas and petrochemical industries, so this award further underpins our international presence. We have worked with BP previously in the region and we are well positioned and committed to providing safe, reliable and efficient support in the delivery of their significant projects moving forwards in Azerbaijan and Georgia."
Khalik Mammadov Vice President, SOCAR, said:
"We have established a successful partnership with Petrofac that continues to flourish, the Joint Venture combines our respective experience, local knowledge and depth of capabilities. I am delighted with this latest award to support BP in the Caspian region, which has become one of the major oil and gas producing areas in the world."
Petrofac has secured two new Framework Agreements (FAs) for the provision of Engineering, Procurement, Construction and Commissioning (EPCC) services.
The first, a three-year FA awarded by EnQuest as part of a multi-contractor framework, covers EPCC services across the Operator’s North Sea and onshore asset base.
The second EPCC FA, awarded by a Southern North Sea Operator, is for an initial two-year period with options to extend.
Petrofac has now secured seven such frameworks in the UK in 2019, demonstrating its continued focus on the growth of its brownfield projects business.
Future work undertaken through the frameworks will be supported by Petrofac’s Aberdeen office, where the company is actively investing in its engineering team and brownfield management system in support of its ongoing digitalisation strategy.
Nick Shorten, Managing Director for Petrofac’s Engineering and Production Services business in the Western Hemisphere said:
"In a mature basin like the UKCS, technical certainty and predictable delivery are critical success factors. The award of these FAs recognises our ability to combine our extensive engineering and construction expertise and offshore operations experience to drive repeatable project outcomes.
We very much look forward to building on the success of our existing relationship with EnQuest by safely supporting it to enhance recovery and extend field life in the North Sea."
Petrofac’s Engineering and Production Services division (“EPS”) has signed a well management contract under Maersk Drilling’s master alliance agreement with Seapulse Ltd, a global exploration company.
Under its alliance with Seapulse, Maersk Drilling is responsible for providing fully integrated drilling services, including provision of drilling rigs and all related services for a global offshore oil and gas exploration programme. Petrofac has been appointed by Maersk to deliver well management services, including project and supply chain management support for shallow water and deepwater wells throughout the duration of the programme. Maersk has also appointed Halliburton to deliver integrated well services.
Two wells in the UK North Sea have previously been announced as part of the work scope which is expected to start drilling in the second half of 2020. A tailor-made process covering all phases in the end-to-end delivery of a well has been developed with the aim to maximise efficiency and remove waste through a novel approach to collaboration in the industry.
Nick Shorten, Managing Director for Petrofac Engineering and Production Services, Western Hemisphere, commented: “Building our well engineering business is a key element of our stated strategy to position EPS for growth in new markets. The aims of the Maersk Drilling and Seapulse alliance closely align with our own operating principles and we are delighted to be part of this exciting global supply chain collaboration. We very much look forward to working with all parties to deliver effective and technically robust campaigns.”
Morten Kelstrup, COO of Maersk Drilling, said: “We’re thrilled to join forces with Petrofac and Halliburton for this programme which breaks new ground in the industry by using a fully integrated service delivery model aimed at eliminating inefficiencies by aligning incentives and removing complexity across the entire value chain. Petrofac and Halliburton bring strong operational expertise and decades of experience in delivering and integrating oilfield services, which will further contribute to the ability to mitigate the operator cost risk associated with exploration drilling whilst we foster new ways of collaborating across the supply chain.”
Scott Aitken, CEO and co-founder of Seapulse, added: “We are very pleased to see the well delivery model that we have entered into with Maersk Drilling continue to mature with world-class partners. The Seapulse business model leverages Maersk Drilling’s partnerships’ technological and operational expertise to drill and test a statistically relevant exploration portfolio of a scale normally only associated with major oil companies.”
RNS Number : 9572T
Petrofac Limited
20 November 2019
Press Release
20 November 2019
PETROFAC SECURES US$120 MILLION IN EPS AWARDS
Petrofac Limited ("Petrofac") announces today awards and contract extensions with a combined value of more than US$120 million, delivering against the Group's strategy to position Engineering & Production Services ("EPS") for growth by diversifying into new markets and geographies.
The awards and contract extensions consist of the following:
· EPS has secured its first small-scale Engineering, Procurement, Construction (EPC) contract in Malaysia. In consortium with partner Serba Dinamik, EPS has been awarded a contract by Asean Bintulu Fertiliser (ABF) Sdn Bhd, one of Malaysia's largest fertiliser plants, for its Third Boiler Project. The ABF plant located in the central region of Sarawak, which started commercial production in 1985, is a subsidiary of PETRONAS Chemicals Group Berhad. The work scope for the 30-month project includes basic and detailed engineering, procurement, construction and commissioning of an additional package boiler (165 tonnes per hour) to improve overall plant reliability and availability and meet total steam demands of 510 tph.
· EPS has also secured a new three-year Engineering, Procurement, Construction and Commissioning (EPCC) Framework Agreement (FA) with a North Sea operator. Future projects undertaken through the FA will be supported by Petrofac's Aberdeen office, where the company is actively growing its engineering team and investing in its brownfield management system in support of its digitalisation strategy.
· The new brownfield projects awards coincide with key North Sea contract extensions for EPS, including a two-year renewal of an existing seven-asset Operations and Maintenance contract, and the extension of EPS' existing Engineering Services contract with Chevron North Sea to June 2020.
John Pearson, Chief Operating Officer, Engineering and Production Services, said: "Continued diversification into new markets, such as brownfield projects, and new geographies, such as Malaysia, are key tenets of our growth strategy. We're also once again delighted that clients in the North Sea have exercised the option to extend our support for important Operations and Maintenance and Engineering Services contracts."
ENDS
RNS Number : 9600T
Petrofac Limited
20 November 2019
Press Release
20 November 2019
ACQUISITION OF W&W ENERGY SERVICES
Petrofac Limited ("Petrofac") announces it has signed a Sale and Purchase Agreement with the shareholders of W&W Energy Services ("W&W") to acquire an entry-level position in the US onshore Operations and Maintenance market.
W&W offers Maintenance, Repair & Overhaul and Pipeline tie-in services in the Permian Basin, the world's largest producing basin. This bolt-on acquisition is in line with Petrofac's stated strategy to position Engineering & Production Services ("EPS") for growth by diversifying into new markets and geographies.
Transaction consideration comprises firm and deferred cash payments, aggregating to a total consideration of 4.5x average W&W EBITDA for the period 2019-21. Petrofac will pay an initial cash consideration of US$22 million on completion. Deferred true-up and earn-out payments will be paid based on W&W's financial performance over the three-year period ended 31 December 2021.
John Pearson, Chief Operating Officer, Engineering and Production Services, said: "This bolt-on provides a platform to grow EPS using a low-risk reimbursable services model in the US onshore services market. As production volumes, infrastructure support requirements and the activity of major operators rise in the Permian, we are confident that the combination of W&W's footprint and strong local brand with Petrofac's Engineering and Modifications capability and global track record can unlock growth."
NOTES
1) W&W's unaudited EBITDA for the financial year ended 31 December 2018 was US$6.6 million.
2) At completion, W&W's net debt was US$2.8 million.
ENDS
Greater Buchan Area (GBA) Development Contractor Appointments
Jersey Oil and Gas plc is pleased to announce the award of contracts to Rockflow Resources Ltd ("Rockflow") and Petrofac Facilities Management Limited ("Petrofac").
Accordingly, Rockflow will provide subsurface evaluation support and Petrofac will provide facilities and well support for the concept selection phase of the GBA development project.
JOG has developed a close working relationship with both Rockflow and Petrofac during the last two years and both companies were instrumental in supporting JOG in its successful application in the UKCS 31st Supplementary Offshore Licensing Round that resulted in the award of the GBA development opportunity.
Andrew Benitz, CEO of Jersey Oil & Gas, commented:
"I am delighted to announce the award of contracts to both Rockflow and Petrofac. We look forward to building on our valued relationship with both companies as we progress through the critical concept selection phases of the Greater Buchan Area development project".
Be cautious buying the dips guys, there is still the threat of Balpa calling additional strike dates. That threat is not off the table, at this time. You saw where the SP went during the strike, so just bare that in mind.
FULL YEAR 2019 GUIDANCE UPDATE
International Airlines Group's (IAG) is updating its full year 2019 operating profit guidance based on recent events.
During September, BALPA's (British Airways main pilots' union) industrial action initially scheduled for the 9, 10 and 27 led to an initial cancellation of 4,521 flights over a period of seven days. Subsequently, 2,196 flights were reinstated leaving 2,325 cancellations. British Airways also introduced flexible commercial policies on 4,070 flights not directly affected by the industrial action. These policies enabled customers to re-book flights or receive a refund. The net financial impact of the industrial action is estimated to be €137 million. In addition, there were further disruption events affecting British Airways in the quarter, including threatened strikes by Heathrow Airport employees, which had a further net financial impact of €33 million.
IAG estimates that the latest booking trends in its low cost segments (primarily Vueling and LEVEL) will have an adverse financial impact of €45 million.
At current fuel prices and exchange rates, IAG therefore expects its 2019 operating profit before exceptional items to be €215 million lower than 2018 pro forma (€3,485 million). Passenger unit revenue is expected to be slightly down at constant currency, compared to flat guidance previously, and non-fuel unit costs are expected to improve at constant currency, unchanged from previous guidance. Capacity growth, measured in ASKs, for the fourth quarter is now expected to be about 2 per cent, which is 1.2 points below previous guidance, and full year capacity growth is expected to be about 4 per cent, compared to 5 per cent previously.
There have been no further talks between British Airways and BALPA. The airline's offer of a 11.5 per cent pay increase over three years still stands and has been accepted by British Airways' other unions, representing 90 per cent of the airline's employees. Clearly any further industrial action will additionally impact IAG's full year 2019 operating profit.
Willie Walsh, IAG's chief executive, and Steve Gunning, IAG's chief financial officer, will host an analysts' conference call at 07:30am UK time (08:30am CET) on Thursday 26 September.
Press Release
19 September 2019
PETROFAC SELLS REMAINING 51% OF MEXICAN OPERATIONS
Petrofac Limited ("Petrofac") announces that it has today signed an agreement to sell its remaining 51% interest in its operations in Mexico(1)(2), including Santuario, Magallanes and Arenque, to Perenco (Oil & Gas) International Limited ("Perenco"). The terms of the transaction are substantially the same as the sale of a 49% non-controlling interest to Perenco in October 2018. The transaction is subject to regulatory approval and is expected to complete in 2020.
Under the terms of the agreement, Petrofac will receive an initial US$37.5 million upon signing and a further minimum payment of US$82.5 million upon completion. The total consideration of up to US$276 million comprises a fixed amount and a series of contingent amounts that depend upon future milestones, including field development, commercial, service contract transition and fiscal terms, and is subject to the level of achievement of the milestones above. Proceeds from the sale will be used to reduce gross debt.
Petrofac's Group Chief Executive, Ayman Asfari said: "This disposal reinforces our position as a capital-light business and represents further progress in our stated strategy to enhance returns. We are proud of the work we have done since 2011 to enhance production from our operations in Mexico and, in particular, of the country's first ever contract migration, which we achieved for the Santuario field in partnership with Pemex and the Mexican authorities."
Perenco CEO, Mr Benoit de la Fouchardière, said: "The signing of this agreement to acquire the remaining shares in Petrofac's Mexico operations marks another strategic move for Perenco, which will allow us to accelerate the deployment of our expertise in relation to the Santuario, Magallanes and Arenque assets. We believe that our unique know-how will significantly enhance the production and value of these mature fields and allow us to address all the associated challenges."
"Through our daily performance and the full commitment and support of the Perenco team we will demonstrate to the State company Pemex that we are the clear partner of choice for the future of these types of mature assets."
NOTES
1) This transaction will be effected by the sale of Petrofac's remaining 51% interest in Petrofac Netherlands Holding B.V., which indirectly holds the Santuario Production Sharing Contract, the Magallanes Production Enhancement Contract (a tariff-per-barrel-based service contract) and the Arenque Production Enhancement Contract.
2) The gross assets being disposed of had a carrying amount of US$666 million at 31 December 2018. The net assets being disposed of had a carrying amount of US$548 million at 31 December 2018. Related non-controlling interest as at 31 December 2018 stood at $266 million. The assets being disposed of made an underlying business performance profit of US$2 million for the year ended 31 December 2018 (51% share equals approximately US$1 million).
3) The uncertainty surrounding the Mexican Energy Reform programme is expected to result in a small non-cash impairment charge. An impairment charge will take into account, inter alia, management's assessment of the fair value of contingent consideration, which will include an assessment of future Production Enhancement Contract transitions.
ENDS
Petrofac secures maintenance services contract for ADNOC's Al Dhafra Petroleum.
Petrofac’s Engineering & Production Services (EPS) division has been awarded a contract to provide managed maintenance services for ADNOC’s Al Dhafra Petroleum to support its operations at Haliba field, located onshore along the south-east border of Abu Dhabi.
Al Dhafra Petroleum is a joint venture company between ADNOC and the Korea National Oil Corporation and GSE Energy. The company explores and develops its concession area as it evaluates the commercial value of several promising fields through an agile operating model. The company recently achieved first oil production at Haliba field on 1 June 2019.
Mani Rajapathy, Managing Director, Petrofac EPS East, said: “We are delighted to be supporting Al Dhafra Petroleum, as production from its Haliba field is an integral part of ADNOC’s strategy to unlock and maximise value from all of Abu Dhabi’s oil and gas resources to create long-term and sustainable returns. This is our first contract to specifically undertake maintenance activities for a full asset in Abu Dhabi, setting us up well to support other key projects in the UAE. Our team look forward to playing their role in maintaining the facilities, adding value through the delivery of services in a safe and highly efficient manner.”
Petrofac first established a presence in the UAE in 1991 and has developed a large workforce supporting both regional and international projects, with a commitment to deliver In-Country Value. Emiratisation is a key business priority and Petrofac is actively promoting current career opportunities.
HLH buys 6286189 UJO shares at 0.2622p
I've bought my first tranche of Tullow Oil today at 204.9p
Highlights:
Solid operational performance in all our businesses
Business performance net profit (1)(2) of US$154 million
Reported net profit (2) of US$139 million
New order intake (3) of US$2.0 billion year to date
Net cash of US$69 million
Interim dividend of 12.7 US cents per share
DIVIDEND
The Board has declared an interim dividend of 12.7 US cents per share (2018: 12.7 US cents). The interim dividend will be paid on 18 October 2019 to eligible shareholders on the register at 20 September 2019 (the 'record date'). Shareholders who have not elected to receive dividends in US dollars will receive a sterling equivalent. Shareholders can elect by close of business on the record date to change their dividend currency election.
Full RNS can be read here, https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/PFC/14203796.html
RNS Number : 6416I
Tullow Oil PLC
12 August 2019
News Release
THIS PRESS RELEASE CONTAINS INSIDE INFORMATION
Jethro-1 oil discovery
12 August 2019 - Tullow Oil plc (Tullow) announces the results of its Jethro-1 exploration well, drilled on the Orinduik licence offshore Guyana by its wholly owned subsidiary Tullow Guyana B.V.
The Jethro-1 was drilled by the Stena Forth drillship to a Total Depth of 4,400m metres in approximately 1,350 metres of water. Evaluation of logging data confirms that Jethro-1 is the first discovery on the Orinduik licence and comprises high quality oil bearing sandstone reservoirs of Lower Tertiary age. The well encountered 55m of net oil pay which supports a recoverable oil resource estimate which exceeds Tullow's pre-drill forecast. Tullow will now evaluate the data from the Jethro discovery and determine appropriate appraisal activity.
This discovery significantly de-risks other Tertiary age prospects on the Orinduik licence, including the shallower Upper Tertiary Joe prospect which will commence drilling later this month following the conclusion of operations at the Jethro-1 well. The non-operated Carapa 1 well will be drilled, later this year, on the adjacent Kanuku licence to test the Cretaceous oil play.
Tullow Guyana B.V. is the operator of the Orinduik block with a 60% stake. Total E&P Guyana B.V. holds 25% with the remaining 15% being held by Eco(Atlantic) Guyana Inc.
Paul McDade, Chief Executive Officer, commented today:
"This substantial and high value oil discovery in Guyana is an outcome of the significant technical and commercial focus which has underpinned the reset of our exploration portfolio. It is an excellent start to our drilling campaign in the highly prolific Guyana oil province. We look forward to drilling both the Joe and Carapa prospects in our 2019 drilling campaign and the material follow-up exploration potential in both the Orinduik and Kanuku licences."
Tullow will host a conference call at 9:00am UK time today to talk about the result with accompanying slides that will be available to download from our website www.tullowoil.com/reports. See call details below.
FOR FURTHER INFORMATION CONTACT:
Tullow Oil plc
(London)
(+44 20 3249 9000)
Julia Ross
Nicola Rogers
George Cazenove
Murray Consultants
(Dublin)
(+353 1 498 0300)
Pat Walsh
Joe Heron
Conference call details:
Conference ID: 4766305
From the UK: 0800 3767922
Outside of the UK: +44 (0) 2071 928000
RNS Number : 2462G
Amerisur Resources PLC
22 July 2019
NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN INTO OR FROM ANY JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A VIOLATION OF THE RELEVANT LAWS OR REGULATIONS OF THAT JURISDICTION
This announcement contains inside information as defined in EU Regulation No. 596/2014 and is in accordance with the Company's obligations under Article 17 of that Regulation.
FOR IMMEDIATE RELEASE
22 July 2019
Amerisur Resources Plc ("Amerisur" or the "Company")
Possible offer from Etablissements Maurel & Prom S.A. ("Maurel & Prom")
The Board of Amerisur Resources Plc ("Amerisur" or the "Company") has noted the announcement this morning by Maurel & Prom regarding a possible offer for the whole of the issued share capital of Amerisur at a price of 12.5 pence per share in cash and 4.5 pence per share in Maurel & Prom shares (the "Possible Offer").
Following the approach from Maurel & Prom concerning its Possible Offer and the receipt of other interest in the Company, the Board concluded that the Maurel & Prom Possible Offer materially undervalued the Company and was not at a level, nor in a form, that merited further consideration.
On 19 July 2019, the Company announced that it has commenced a strategic review, including a Formal Sales Process as set out by The City Code on Takeovers and Mergers (the "Code"). Immediately following the announcement, through a conversation between our respective advisors, Maurel & Prom was invited to participate in this process and, as set out in their press release, has agreed to do so. The Board welcomes Maurel & Prom's participation in the competitive Formal Sales Process.
The Board can confirm that a number of conversations have taken place since the announcement of the competitive Formal Sales Process with counterparties who have expressed their interest in participating and it is confident that a competitive process involving several of these potential counterparties can be completed to the benefit of all shareholders.
The Board will therefore consider any future proposal put forward by Maurel & Prom in the context of the ongoing competitive Formal Sales Process. Shareholders are strongly advised to take no action in respect of the Possible Offer.
A spokesperson for Amerisur said:
"The purpose of the competitive Formal Sale Process we launched on Friday is to maximise value for shareholders. As well as the offer from Maurel & Prom, we have had a number of additional expressions of interest in the Company."
The Takeover Panel has granted a dispensation from the requirements of Rules 2.4(a), 2.4(b) and 2.6(a) of the Code such that any interested party participating in the formal sale process will not be required to be publicly identified (subject to note 3 to Rule 2.2 of the Code) and will not be subject to the 28 day deadline referred to in Rule 2.6(a) of the Code, for so long as it is participating in the formal sale process.
Any further updates regarding the competitive Formal Sales Process will be announced as appropriate.
This announcement has been made without the prior consent of Maurel & Prom. There can be no certainty that any firm offer for the Company will be made nor as to the terms on which any firm offer might be made.