Sequa Petroleum N.V. ("Sequa" or the "Company") today
announces that following a strategic review it plans to cease
its E&P activity in Norway conducted through Tellus Petroleum
AS, and focus on acquiring assets elsewhere in Europe.
Pursuant to local statutory requirements, consultation
procedures with Tellus employee representatives have been
initiated and other required steps will follow in due course.
Further to its press release of 23 December 2016 in relation
to the Sequa Petroleum N.V. USD 300,000,000 5.00 per cent
Convertible Bonds due 2020 of which USD 204,400,000 in
principal amount remain outstanding, ISIN: XS1220076779
("Bonds"), the Q4 2016 USD $5.11M coupon is still
outstanding, however the Company understands that the
required majority of the Bonds is now held by its main
shareholder (Sapinda and affiliates), who are supportive of
restructuring the Company's debt. The cessation of business
in Norway constitutes under article 10 (g) of the Terms and
Conditions of the Bonds a potential default of the Bonds,
which the Company also expects to be resolved with Sapinda's
support.
By way of update on the convertible loan facilities totalling
USD 62.5M from Sapinda Invest Sarl and Sapinda Asia Limited
("Convertible Loan"), since 23 December a further USD
1,527,640 was provided meaning a total of USD 5,118,521 has
now been received since 30 June 2016. The amounts received
did not match the timing or quantum requested by the Company,
however the Company currently expects to be able to draw
sufficient further funds to enable it to continue to trade
whilst the Company's debt is being restructured and the
process to cease activity in Norway and liquidate Tellus
assets is completed.
The net funds expected from the repatriation of liquidated
assets together with debt restructuring will enable the
Company to progress selected high quality acquisition targets
of production and development assets elsewhere.
Effective today, Jelte Bosma will relinquish his role of
director of the Management Board, to pursue additional
interests outside the oil & gas sector. Mr Bosma will
continue as an employee of the Company with a focus on
business development.
Contacts:
Jacob Broekhuijsen, Chief Executive Officer
+44(0)203-728-4450 or info@sequa-petroleum.com