UMC Energy Plc Announcement (0471A)

TIDMNSN TIDMUEP

RNS Number : 0471A

Natasa Mining Limited

26 March 2012

26 March 2012

Natasa Mining Limited

("Natasa" or the "Company")

UMC Energy Plc Announcement

Natasa, the investment company with a focus on the mining finance industry notes an announcement released today by UMC Energy plc, in which Natasa holds 205,351,879 fully paid ordinary shares, representing 42.39% of the entire issued share capital.

Announcement re Subscription Agreement

Further to the announcement of 12 September 2011, regarding the acquisition by the Company of three granted Petroleum Prospecting Licences ("PPLs") in Papua New Guinea, namely, offshore PPLs 374 and 375 and onshore PPL 378 (together, the "Petroleum Titles"), the directors of UMC are pleased to advise that on 26 March 2012 the Company entered agreements with CNOOC Australia Limited ("CNOOC"), a subsidiary of CNOOC Limited, the Chinese multi-national oil and gas company listed on the New York and Hong Kong Stock Exchanges, whereby CNOOC will subscribe for a 70% equity interest in PNG Energy Limited ("PNG Energy"), presently a wholly owned subsidiary of the Company, which owns, through its wholly owned subsidiary Gini Energy Limited ("Gini Energy"), the Petroleum Titles and UMC Energy will retain a 30% equity interest (the "Agreements").

Pursuant to the Agreements, and in consideration for the share subscription, CNOOC will be responsible for funding all expenditure in respect of the Petroleum Titles required to comply with the minimum work obligations during the exploration phase. Such expenditure will be repaid to CNOOC out of production revenues and off take of oil and gas once the assets of Gini Energy enter production, should such production occur. If exploration and appraisal work indicates the probable existence of commercial reservoirs of oil or gas in any part of the Petroleum Titles at the end of the exploration phase,the parties must each finance their pro-rata share of all expenditure required in respect of the development plan either themselves or by procuring sufficient finance from a third party.

In addition, the Agreements entitle CNOOC to appoint two directors to the boards of each PNG Energy and Gini Energy, with the Company entitled to appoint one director to each board.

For further information:

Enquiries:

Chrisilios Kyriakou, Chairman

UMC Energy Plc

Telephone: [phone]

Angela Peace/ James Spinney

Strand Hanson Limited

Telephone: [phone]

Philip Haydn-Slater/Paul Dudley

HD Capital Partners LLP

Telephone: [phone]

ENDS"

Enquiries:

 
 Natasa Mining Ltd 
  Chrisilios Kyriakou, Executive 
  Chairman 
  www.natasamining.com               [phone] 
 
  Strand Hanson Limited 
  Financial Adviser 
  Angela Peace/James Spinney         [phone] 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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