Hague and London Oil PLC Corporate update (4612N)

TIDMHNL

RNS Number : 4612N

Hague and London Oil PLC

09 August 2017

9 August 2017

HAGUE AND LONDON OIL PLC

(the "Company" or "HALO")

CORPORATE UPDATE

Vermeer Transaction

On 11 May 2016 HALO announced a proposed portfolio restructuring and strategic repositioning towards lower risk opportunities whilst retaining exposure to higher risk exploration. Higher risk assets were to be spun out into a subsidiary of HALO, Vermeer Exploration BV ("Vermeer"), including all licence interests in Western Sahara ("SADR") and French Guyana, and 51% of Vermeer's shares were to be sold by HALO to a group of investors, which included Andrew Cochran, the Executive Chairman of HALO, (the "Vermeer Investors") for a consideration of US$500,000 (the "Vermeer Divestment"); the first half of which was paid during H1 2016 and the second half was to be payable on successful extension of the licence in French Guyana (the "Licence Extension").

In the light of delays and increasing uncertainty around the French Guyana licence extension, the Vermeer Investors have, in order to provide further short term working capital to the Company in the lead up to the completion of the proposed acquisition of Tullow 101 Netherlands B.V., announced on 10 April 2017, advanced a total of US$375,000 since Q4 2016. Details of the loan agreement relating to such advances are currently being finalised and will be announced shortly. The 25.5% of Vermeer shares, the transfer of which to the Vermeer Investors was subject to the Licence Extension, were transferred to the Vermeer Investors in June 2017.

Philippines - SC54A

The Company (through its wholly owned subsidiary HALO BV) holds a 15% interest in Service Contract SC54A in the NW Palawan Basin, offshore Philippines. The operator has informed HALO that approval has been received from the Philippines Department of Energy for a further three year suspension to the licence exploration period as a result of Force Majeure in respect of the West Philippines Sea dispute, a territorial dispute in the South China Sea which is the subject of international arbitration. The suspension runs until 5 August 2020, unless the dispute is settled before that time. No activity beyond care and maintenance is expected on the licence for the foreseeable future.

Enquiries:

 
 Hague and London Oil 
  PLC 
  6 Charlotte Street, 
  Bath, 
  BA1 2NE 
 
  Attention: 
  Andrew Cochran 
  Executive Chairman 
  [e-mail] 
 
  Natalia Erikssen 
  IR/PR enquiries 
  [e-mail] 
 
  [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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August 09, 2017 02:15 ET (06:15 GMT)