Tórshavn, Faroe Islands, 2016-03-24 23:11 CET (GLOBE NEWSWIRE) -- P/F Atlantic Petroleum (NASDAQ OMX COPENHAGEN: ATLA DKK & Oslo Stock Exchange: ATLA NOK) today announces that it has entered into Heads of Terms with London Oil and Gas Ltd.
The Heads of Terms state that in principle and subject to approval from its board, London Oil & Gas Limited ("LOG") is prepared to inject funds and assets into P/F Atlantic Petroleum of at least GBP 8 million by 24th of June 2016 through a convertible instrument (“Proposed Transaction”) subject to the negotiation and execution of a legally binding agreement, the compromise or resolution in relation to certain liabilities of Atlantic Petroleum North Sea Limited ("APNS") and the agreement of arrangements going forward on the treatment of the debt owed to P/F Atlantic Petroleum's main creditor Eik Bank. The Proposed Transaction is also subject to approval from P/F Atlantic Petroleum's General Assembly.
P/F Atlantic Petroleum has undertaken that for the duration of an Exclusivity Period of 90 days from 24th of March 2016 it will discuss and negotiate the Proposed Transaction with London Oil & Gas on an exclusive basis conditional upon London Oil & Gas forwarding a loan of minimum GBP 47,000 per month for the duration of the Exclusivity Period.
Ben Arabo, CEO of Atlantic Petroleum said:
“We look forward to negotiate the details of the proposed transaction with London Oil & Gas, and to working on resolving the creditor issues which are necessary to resolve to make a successful outcome possible. Given the Groups current financial position, we think that a solution, as proposed, with London Oil and Gas is the best way forward for Atlantic Petroleum, and its stakeholders.”
Simon Hume-Kendall, CEO of the London Group and London Oil & Gas Ltd said:
“We are very keen to pursue this transaction and invest in P/F Atlantic Petroleum. Atlantic Petroleum's Orlando & Kells assets are expected to have a high value when the market conditions improve, and given the right terms, we are keen to gain an interest in those assets. If the transaction succeeds, London Oil and Gas looks forward to work with Atlantic Petroleum's management and board to review the company's strategy and explore the potential for expansion, including geographical, of Atlantic Petroleum's activities in line with the areas of business of The London Group.”
London Group Plc - www.londongroupplc.com - is a UK based Plc focused on the acquisition and development of down valued assets in both the tourism and energy sectors.
Atlantic Petroleum in brief:
Atlantic Petroleum is a full cycle exploration and production (E&P) Group focused on North West Europe. Atlantic Petroleum participates in joint ventures with 30 reputable, international partners. Atlantic Petroleum P/F is based in Tórshavn, Faroe Islands, and the Company has subsidiaries and offices in London, UK and Bergen, Norway. Atlantic Petroleum’s existing shares are listed on NASDAQ OMX Copenhagen and on Oslo Stock Exchange.
Further Details:
Further details can be obtained from Ben Arabo, CEO, tel +298 550100 (ben.arabo@petroleum.fo). This announcement will be available, together with other information about Atlantic Petroleum, on the Company's website: www.petroleum.fo.
On the website, it is also possible to sign up for the Company’s e-mail newsletter.
Announcement no.05/2016
Issued 24-03-2016
P/F Atlantic Petroleum
Yviri við Strond 4
P.O. Box 1228
FO-110 Tórshavn
Faroe Islands
Telephone +44 208 834 1045
Fax +44 208 834 1125
Website: www.petroleum.fo
E-mail: petroleum@petroleum.fo