Update on Further Drawdown Request

 

TIDMTMAN 
 
RNS Number : 9359P 
Timan Oil & Gas Plc 
01 April 2009 
 
 
 
Timan Oil & Gas plc ("Timan" or the "Company") 
 
 
Update on Further Drawdown Request 
 
 
 
 
On 16 March 2009 Timan announced that Kamanisk Holdings Limited ("Kamanisk") 
informed the board of the Company ("Board") on 13 March 2009 that, pursuant to a 
drawdown request for $7.5 million, such funds would be made available to the 
Company by 31 March 2009, with $300,000 made available within 3 business days. 
On 23 March 2009 Timan received $300,000 from Kamanisk which enabled the Company 
to continue to trade. The remainder of the $7.5 million requested from Kamanisk 
was not received by the Company on 31 March 2009. 
 
 
On 31 March 2009 Timan received a proposal from Kamanisk citing current economic 
conditions and seeking to amend the loan facility of 29 September 2009 whereby, 
inter alia, it provides up to $14.5 million over the course of the next 6 
months. It is further proposed that Timan and Kamanisk jointly seek to attract a 
strategic partner during the period up until 1 September 2009.  Should such 
search for a strategic partner fail and Kamanisk has at that point provided a 
total of $25 million to the Company it is proposed that this be convertible into 
51% of the issued shares capital of Timan (the original agreement stipulated 
that $50 million would convert into 51%, which conversion valuation will remain 
in place up until 1 September 2009). 
 
 
The Company considers the principal terms of the loan restructuring proposal to 
be acceptable and will be working to document the variation as a priority. 
 
 
The Board believes it currently has two weeks worth of working capital subject 
to agreeing satisfactory terms with its major creditors but it expects to 
receive $500,000 from Kamanisk by 10 April 2009 with a further $1 million by 30 
April 2009. As such the Board considers that the Company can continue to 
trade in anticipation of receipt of the next tranche of monies. 
 
 
As a result of these cash flow delays facing the Company, operations on NGPT are 
progressing more slowly than planned. An operational update and further 
financial updates will be made in due course. 
 
 
Enquiries: 
 
 
Timan Oil & Gas plc 
Alexander Kapalin, Chief Executive Officer 
Boris Litvak, Non-Executive Chairman 
[phone] 
 
 
Strand Partners Limited 
Rory Murphy/Simon Raggett 
+ 44 (0) 20 7409 3494 
 
 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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