Australia's Carnarvon Takes Equity Stake in Singapore's Loyz Energy
Loyz Energy Limited (Loyz Energy or the Company, and together with its subsidiaries, the Group), a fast-growing Singapore-based upstream energy group announced today that Loyz Oil Thailand Pte Ltd (Loyz Oil), a wholly-owned subsidiary of the Company, had, on Jan. 15, entered into a supplemental sale and purchase agreement (the Supplemental Agreement) with Carnarvon Thailand Limited (Carnarvon) for the amendment of certain terms in the sale and purchase agreement dated Feb. 28, 2014 (the Agreement). The Agreement was in relation to the acquisition by Loyz Oil from Carnarvon of a 20.0 percent participating interest in SW1 / L33 / L44 oil concessions (Concessions) located at Phetchabun Basin, Thailand (the Acquisition) as announced by the Company March 3, 2014. The Acquisition, which was completed April 30, 2014, was for a total consideration of $65 million, comprising payment of (a) $33 million, which was satisfied in full on the date of completion of the Acquisition, and (b) the remaining $32 million to be satisfied as a debt due and payable by way of post completion receivable payments (the Post Completion Receivable Payments), Nov. 30 of each year, with the first payment due Nov. 30, 2015.
The Company announced that pursuant to the Supplemental Agreement, the first payment for the Post Completion Receivable Payment, amounting to $702,000, has been amended and shall be satisfied by: (a) a payment of $100,000, payable in cash by Dec. 30, 2015, which for the avoidance of doubt, was paid by the Group to Carnarvon Dec. 30, 2015; and (b) a payment of $602,000, payable by the issue and allotment of 21,597,000 new ordinary shares in the capital of the Company (the New Shares) at an issue price of $0.0278 (SGD 0.040) per New Share by Jan. 31, subject to approval from all applicable authorities.
Commenting on Carnavon taking an equity stake in the Company, Managing Director of Loyz Energy, Adrian Lee said, “This equity participation by Carnavon will improve our cash flows for the operational requirements of the Concessions.” A drilling program for further exploration of the resources at the Concessions is being implemented."
The proposed issue of the New Shares in lieu of cash payment will also strengthen the Group’s balance sheet. The Group’s share capital will increase to $111.2 million from $110.6 million as at June 30, 2015 and NTA per share of the Group will increase to $0.0189 from $0.0186 as at June 30, 2015.
Lee added, “The management has been very active in looking for ways to ensure that Loyz Energy remains resilient at this stage of the oil and gas cycle.”
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