Sequa Petroleum plans to cease its activities in Norway
Friday, Feb 10, 2017
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.
For more information, please visit: http://www.sequa-petroleum.com