Cornhill Capital Limited Group To Reject Parkmead Offer For Lochard Energy (8980F)

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RNS Number : 8980F

Cornhill Capital Limited

30 May 2013

Shareholder Group Intention To Reject Parkmead Offer For Lochard Energy

A consortium of investors being represented by Cornhill Capital Limited and accounting for 20.37% of the outstanding shares in Lochard Energy (LHD) are not intending to accept the offer of 0.385 Parkmead Group (PMG) shares for 1 LHD share.

Whilst the consortium fully agrees that the company needs to be run by an experienced and proven operator, the company has been consistently revenue generative from its 10% stake in The Athena field. This revenue has enabled it to pay down its Senergy settlement in full and the majority of its outstanding Gemini loan arrangement, to the extent that repayments to Gemini should now be at 20% of gross revenues, further increasing LHD's cash position and making it a profitable entity. As such the group believes that the offer of 0.385 PMG shares for 1 LHD share materially undervalues the company.

The following have given written consent to Cornhill Capital to the issuance of this announcement and that they do not intend to support the deal:-

Private Clients of Cornhill (Jarvis Investment Management as Custodian) - 8,185,000 (2.74%)

Peter Ross - 7,813,930 (2.61%)

Gardner Marketing PTY (Haydn Gardner) - 17,528,421 (5.86%)

Barby RJ & Associated Entities (Roger Barby) - 27,376,128 (9.16%)

These combined parties total 60,903,479 shares representing approximately 20.37% of the company.

Cornhill Capital

7(th) Floor, One Angel Court

Copthall Avenue

London

EC2R 7HJ

Contact:

Adam Dziubinski

[phone]

[e-mail]

Cornhill Capital Limited is authorised and regulated by the Financial Conduct Authority, and a member of the London Stock Exchange. Registered address: 7(th) Floor, 1 Angel Court, Copthall Avenue, London, EC2R 7HJ.

This information is provided by RNS

The company news service from the London Stock Exchange

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