Bluebird Energy PLC AGM Statement (2280T)

TIDMBBE

RNS Number : 2280T

Bluebird Energy PLC

11 December 2012

BLUEBIRD ENERGY PLC

(AIM: BBE)

AGM Statement

At the Bluebird Energy plc ("Bluebird" or "the Company") Annual General meeting to be held at 11.00am today, James Ede-Golightly, Chairman will make the following statement:

At the Company's Revloc project in Pennsylvania all seven of its wells have been plugged and abandoned, as required by state law. The plugging will allow the recovery of certain performance bonds held with the state which, along with the disposal of fixed assets and certain coal rights will largely offset the costs of the exercise to the JV partners. The Company has disposed of its 5.3 per cent. royalty interest in Cimarron properties for $26,000 which was paid on completion in cash. Marketing efforts for the sale or farm-out of the Solitaire continue. While initial research is supportive of the potential of the acreage as a Mississippian oil play, parts of the licence area expire from Q2 2013 and a recent State of Colorado oil and gas lease auction received no bid on parcels in Kit Carson County.

Following a review of strategy, the board has decided to broaden the extent of Bluebird's investment focus to include opportunities outside the oil and gas sector. This decision reflects the board's investment experience and focus on maximising long term value for shareholders principally on maximising growth in net asset value per share.

In the short term, Bluebird remains focused on maximising the value of its shareholding in Wessex Exploration PLC as well as realising value from the Solitaire acreage. Having substantially completed the rationalisation of its cost base, the company will now establish an investment capability while retaining overheads at a modest level. To this end Bluebird has secured an agreement with ORA Group Services Limited to provide core accounting and secretarial services. As ORA Group Services Limited is an associated company of ORA (Guernsey) Limited, which owns approximately 25.8 per cent. shares in Bluebird, this constitutes a related party transaction. The directors, having consulted with the Company 's nominated adviser, WH Ireland, consider the transaction to be fair and reasonable insofar as its shareholders are concerned.

Commenting on today's announcement, James Ede-Golightly, Chairman of Bluebird, said:

"These developments reflect substantial progress in rationalising the company's US oil and gas portfolio while allowing the company and its shareholders to benefit on the substantial opportunities within the broader investment universe."

 
 Contacts 
 Bluebird Energy plc           www.bluebirdenergy.net 
 James Ede-Golightly              [phone] 
 
 WH Ireland Limited              www.wh-ireland.co.uk 
 John Wakefield/Marc Davies      [phone] 
 

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