Vis børsmeldingen
Colombian subsidiary, Interoil Colombia Exploration and Production (“ICEP”), has
reached an agreement with the Colombian National Hydrocarbons Agency -Agencia
Nacional de Hidrocarburos- (the “ANH”) for a partial termination of the
Exploration and Production contract between ICEP and the ANH over the LLA-47
block (the “LLA-47 Contract”).
This contract termination is predicated upon the difficulties related to
community’s unflinching opposition to exploration activities that have prevented
normal development of activities and satisfaction of exploratory commitments for
an extensive period of time, which motivated several time extensions and
suspensions granted by the ANH to contract term.
Under such partial termination, the provisions of the LLA-47 Contract concerning
exploration activities and commitments shall be terminated and the exploration
area of the block shall be handed back to the ANH, but without affecting
production from the Vikingo well exploitation area that has not be objected by
the communities and that shall continue for the remaining economic life of the
well.
Subject to the terms of the termination agreement to be entered into by ICEP and
the ANH, the termination of the LLA-47 Contract shall be made without penalties
or compensations of any kind to be made by ICEP or the Company for the
frustration of the exploration commitments, or requirements to carry out in
other area any of the exploratory investment commitments arising out of the LLA-
47 Contract and pending at present.
These commitments consist in the drilling of nine (9) exploration wells
representing an aggregate exploration investment of USD 27,000,000. In turn,
production from the Vikingo well exploitation area is expected to continue for
the remaining economic life of the well.
In addition, and for the same reasons that affected the LLA-47 Contract, a
termination of the Exploration and Production contract between ICEP and the ANH
over the neighboring Altair block (the “Altair Contract”) is also expected.
This termination would also be made without penalties or compensations of any
kind to be made by ICEP or the Company, or requirement to carry out in other
area the only exploratory investment commitment pending in the Altair Contract
consisting in the drilling of one (1) exploration well, with an exploration
investment value of USD 3,000,000. In this case, contract termination would be
total rather than partial as the Altair block is not in production and no
exploitation area would be retained by ICEP.
As part of the termination process, and in accordance with the provisions of the
LLA-47 Contract, the ANH has permitted ICEP to reduce the guarantees securing
the LLA-47 Contract from a total of usd 11,100,000 to a sum of USD 100,000. A
reduction also to USD 100,000 of the USD 300,000 guarantee securing the Altair
Contract has also been granted by the ANH.
Termination of the LLA-47 Contract shall be submitted to the consideration of an
internal Committee of the ANH and execution of the Minutes of Partial
Termination providing, inter alia, for the transfer back to the ANH of the
exploration area of the block, the reporting of the termination to the
communities, the issue of acknowledgements of exploration activities carried out
in the area and several certificates and clearance receipts on labor and
suppliers payments.
The Company, in turn, shall also summon for a written resolution approving the
terminations referred to herein by the holders of the Senior Secured Callable
Bonds 2015/2026 issued by the Company. A separate announcement will be made when
the proposal to the bondholders is distributed.
Interoil Exploration and Production ASA is a Norwegian based exploration and
production company - listed on the Oslo Stock Exchange with focus on Latin
America. The Company is operator and license holder of several production and
exploration assets in Colombia and Argentina with headquarter in Oslo.
This notice contains information which is considered inside information pursuant
to the European Market Abuse Regulation. The notice has been published by Geir
Arne Drangeid (Partner and Senior Advisor, First House AS) at 23:30 CEST on 26
August 2024.
This information is subject to the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
Kilde
