TORONTO, ONTARIO-(Marketwired - Aug. 26, 2015) - PetroMaroc Corporation plc (TSX VENTURE:PMA), an independent oil and gas company focused on Morocco (the “Company” or “PetroMaroc”) is pleased to announce its financial and operating results for the second quarter of 2015.
Commenting, D. Campbell Deacon, Interim CEO of PetroMaroc, said: “During the second quarter the Company entered into a Debenture Waiver and Amending Agreement with all three holders of the Cdn$9.7 million principal debentures, and closed a Cdn$0.4 million unsecured loan. The strategic and financial alternatives process continues, and discussions are progressing with several interested parties, in conjunction with initiatives to secure short term additional capital for the Company’s ongoing costs. Monthly general and administrative costs totalled US$0.2 million (which includes accrued Directors Fees). Subsequent to the quarter‐end, the Company closed its Calgary office, resulting in cost reductions. The Company insofar as possible continues to reduce ongoing general and administrative costs”.
- Unrestricted cash as at June 30, 2015, US$0.45 million (As at March 31, 2015, US$0.7 million).
- Working capital deficit as at June 30, 2015, US$2.6 million (excludes the Cdn$9.7 million convertible debenture which matures in April 2016, excludes the Cdn$0.4 million unsecured loan which matures by April 2016, includes US$1.1 million restricted cash). As at March 31, 2015, US$0.002 million working capital surplus (excludes the Cdn$9.7 million convertible debenture, includes US$3.1 million restricted cash).
- Entered into a Debenture Waiver and Amending Agreement with all three holders of the Cdn$9.7 million principal debentures in June 2015, to defer the quarterly interest payments to April 2016.
- Closed a Cdn$0.4 million unsecured loan in June 2015, bearing interest of 10.0% per annum.
- The Company continues discussions with its Sidi Moktar creditors of the remaining unpaid costs in respect to the 2013 - 2014 Sidi Moktar drilling campaign. The deferred payment is a necessary measure required to pursue the Company’s efforts to secure additional funding.
- The Company has assessed restructuring alternatives to the Company’s debt and share capital. Currently, there is insufficient capital available to undertake a corporate restructuring.
- Additional capital is required before the end of October 2015, for the Company to continue its current operations.
- Sidi Moktar onshore:
- The Company has applied for a six to nine month extension of the First Extension Period of the Exploration Licence, which currently expires on August 28, 2015, in order to secure additional funding, to advance the Sidi Moktar Exploration Licence. This extension, along with an agreed work programme for the Second Extension Period remains subject to approval by the joint venture partners and the Moroccan authorities.
- The Company is seeking to release US$0.5 million restricted cash lodged as a bank guarantee, per the Company’s Farm‐in agreement with MPE (a partner on the licence).
- Foum Draa offshore:
- Subsequent to the quarter‐end, the Company and all joint venture partners elected to withdraw from the Exploration Licence at the end of the First Extension Period, having fulfilled all work commitments.
- Zag onshore:
- Subsequent to the quarter‐end, and following the joint venture not completing the minimum work commitment of the First Extension Period (which expired in May 2015), a one‐year extension to the First Extension Period was agreed by the joint venture i.e. to May 2016. During the one‐year extension the Company will continue to seek a mutually agreed technical, commercial and financial proposal to reduce its financial exposure insofar as possible. This extension, remains subject to approval by the joint venture partners and the Moroccan authorities.
- The Company continues to accrue US$1.2 million penalty costs due to a material uncertainty that the joint venture will either complete the minimum work commitment or reach an agreed technical, commercial and financial proposal. US$1.2 million represents the Company’s share of penalty costs per the Exploration Licence First Extension Period, with the US$0.6 million of restricted cash lodged as a bank guarantee being available to offset this potential penalty. Previously capitalised costs, which were impaired in 2014, continue to remain impaired.
PetroMaroc today filed its financial statements and management’s discussion and analysis for the quarter ended June 30, 2015. These documents and additional information about the Company are available on the PetroMaroc website at www.petromaroc.co or under the Company’s SEDAR profile at www.sedar.com.
PetroMaroc is an independent oil and gas company focused on its significant land position in Morocco. The Company has a 50 percent operated interest in the Sidi Moktar licence area covering 2,683 square kilometres and is working closely with Morocco’s National Office of Hydrocarbons and Mines (ONHYM) as a committed long‐term partner to unlock the hydrocarbon potential of the region. Morocco offers a politically stable environment to work within and has favourable fiscal terms to energy producers. PetroMaroc is a public company listed on the TSX Venture Exchange under the symbol “PMA”.
Special Note Regarding Forward Looking Statements
This press release contains forward‐looking statements. Such forward‐looking statements relate to future events or the Company’s future performance. All statements other than statements of historical fact are forward‐looking statements. Forward‐looking statements are often, but not always, identified by the use of words such as “may”, “will”, “should”, “expect”, “plan”, “anticipate”, “believe”, “estimate”, “predict”, “project”, “potential”, “targeting”, “intend”, “could”, “might”, “continue” or the negative of these terms or other similar terms. Forward‐looking statements in this press release include, but are not limited to, statements regarding the recruitment of a partner to develop Sidi Moktar, proving the commercial viability of Sidi Moktar, the ability of the Company to secure immediate capital in the near term to advance operations to remain a going concern and that the Company may therefore be unable to realise assets and discharge liabilities in the normal course of business, the ability of the Company to successfully negotiate with its trade creditors to continue to agree to deferral of unpaid costs in respect to the 2013‐2014 Sidi Moktar drilling campaign, the ability of the Company to access restricted cash in the time periods indicated, the ability of the Company to receive a six to nine month extension of the First Extension period of the Exploration Licence, to obtain requisite approvals from the joint venture partner and the Moroccan authorities for such extension and in respect of an agreed work program for the Second Extension Period, the ability of the Company to reduce its financial exposure in respect of the Zag onshore licence and its ability to obtain requisite approvals from the joint venture partner and the government authorities in respect of the one‐year extension to the First Extension Period for the Zag onshore licence, the completion of evaluations and processing and interpretation of data, the performance characteristics of the Company’s oil and gas properties, capital expenditure programmes, supply and demand for oil, gas and commodities, prices for oil and gas, drilling plans, and realization of the anticipated benefits of acquisitions.
Forward‐looking statements are only predictions. Forward‐looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward‐looking statements. Some of the risks and other factors which could cause results to differ materially from those expressed in the forward‐looking statements contained in this press release include, but are not limited to: general economic conditions in Canada, the Kingdom of Morocco and globally; industry conditions, including fluctuations in the price of oil and gas, governmental regulation of the oil and gas industry, including environmental regulation; fluctuation in foreign exchange or interest rates; risks inherent in oil and gas operations; political risk, including geological, technical, drilling and processing problems; unanticipated operating events which could cause commencement of drilling and production to be delayed; the need to obtain consents and approvals from industry partners, regulatory authorities and other third‐parties; stock market volatility and market valuations; competition for, among other things, capital, acquisitions of reserves, undeveloped land and skilled personnel; incorrect assessments of the value of acquisitions or resource estimates; any future inability to obtain additional funding, when required, on acceptable terms or at all; credit risk; changes in legislation; any unanticipated disputes or deficiencies related to title matters; dependence on management and key personnel; and risks associated with operating in and being part of a joint venture.
Although the forward‐looking statements contained in this press release are based upon factors and assumptions which management of the Company believes to be reasonable, the Company cannot assure that actual results will be consistent with its expectations and assumptions. Undue reliance should not be placed on the forward‐looking statements contained in this news release as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. These statements speak only as of the date of this press release, and the Company does not undertake any obligation to publicly update or revise any forward‐looking statements except as expressly required by applicable securities laws.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of PetroMaroc in any jurisdiction in which such offer, solicitation or sale would be unlawful. The securities referred to herein have not been and will not be registered under the United States Securities Act of 1933 (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons (as defined in the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws, or an exemption from such registration is available.
PetroMaroc Corporation plc
Chief Financial Officer and Corporate Secretary
+44 (0) 20 3137 7756
PetroMaroc Corporation plc
VP Commercial Development
+44 (0) 20 3137 7756