PA Resources AB ("PA Resources" or the "Company") announces, further to the
announcement of 7 April that its largest creditor and shareholder, Gunvor Group,
has demanded repayment of amounts due under the Company's reserve based lending
facility ("RBL"), that the Company has received notice that Gunvor has taken
action to enforce its security under the RBL, being a pledge over the Company's
shares in its wholly-owned subsidiary, Osborne Resources Limited ("Osborne").
Osborne owns interests in Equatorial Guinea, namely the producing Aseng and Alen
fields, and the Block I exploration interest. The effect of this enforcement
action is that Osborne is no longer a subsidiary of the Company and has become a
subsidiary of Gunvor Group.
The Company has been informed that as a result of the enforcement action, the
liabilities of all borrowers under the RBL have been discharged, other than
certain liabilities owed by Osborne to Gunvor Group which remain in place after
the transfer of the shares.
The receivers appointed by Gunvor Group in connection with the enforcement
action have taken a call option over the shares in Osborne such that, if a bona
fide and fully funded offer is made by any person for the shares in Osborne
which, broadly, matches the consideration, 67 MUSD, for the transfer of the
shares to Gunvor Group, the receivers can call for the shares to be transferred
to that person. This call option will expire on 7 May 2015.
If the Company or any of its stakeholders were to make an offer for the shares
in Osborne, such offer would also have to include a settlement of the
outstanding amount, approximately 22 MUSD, owed by Osborne to Gunvor Group under
the RBL.
As a result of the transaction Osborne will be deconsolidated from the Company
per the 7 April 2015 and the Company’s debt and accrued interest under the RBL
will be considered repaid in full. According to preliminary calculations the
transaction will result in a net gain to the company of approximately 200 MSEK.
A more precise calculation of the financial effects will be presented in
conjunction with the report for the first quarter 2015.
The board of the Company is considering the implications of these actions taken
by Gunvor Group and will provide a further update in due course.
Stockholm 8 April, 2015
PA Resources AB (publ)
For additional information, please contact:
Tomas Hedström, Chief Financial Officer
Phone: +46 8 545 211 50
E-mail: ir@paresources.se
PA Resources AB (publ) is an international oil and gas group which conducts
exploration, development and production of oil and gas assets. The Group
operates in Tunisia, Republic of Congo (Brazzaville), Equatorial Guinea, United
Kingdom, Denmark, Netherlands and Germany. PA Resources is producing oil in West
Africa and North Africa. The parent company is located in Stockholm, Sweden. PA
Resources’ net sales amounted to SEK 603 million in 2014. The share is listed on
the NASDAQ OMX in Stockholm, Sweden. For additional information, please visit
www.paresources.se.
The above information has been made public in accordance with the Securities
Market Act and/or the Financial Instruments Trading Act. The information was
published at 16:00 CET 8 April 2015.
