Rheochem to Complete Acquisition of North Sea Assets

Rheochem has received written confirmation from the UK Department of Energy & Climate Change that the Secretary of State for Trade and Industry does not intend to exercise its right to revoke any licenses granted to Zeus, as a result of the change of ownership following the acquisition by Rheochem of the remaining 50% shareholding. Therefore practical completion of the acquisition will now be finalized. 

Rheochem previously reported in the June 30, 2009 accounts a claim made by Senergy UK against Zeus. Rheochem has now been notified that Synergy has commenced proceedings in the High Court in London with respect to these claims. The claims relate to an alleged breach of a Letter of Commitment dated May 2008 with respect to an alleged drilling commitment. The claim is for US $11,707,000 and £542,199 plus costs and interest and also includes a rectification argument claiming an alleged error in the LOC. The management of Zeus intend to vigorously defend the claim. Any further updates will be made in due course. 

Commenting on the announcement today Haydn Gardner, CEO of Rheochem, said, "We are delighted to have completed this acquisition which allows us to move forward with the Company's North Sea assets and in particular the Athena development. We believe that Senergy has been opportunistic in the timing of its claim. We look forward to resolving this issue through the courts."