Crown Energy AB (”Crown Energy” or ”Company”) issues this statement to summarise recent operational activities.
* Moving towards final closing of the farm-out transaction on the licence Block 2B in South-Africa
* Important security and operational development in Iraq
* Further technical development of the Manja licence in Madagascar and operational activities in Equatorial Guinea
South-Africa, Block 2B
We understand from our lawyers in Cape Town that we have now received formal Governmental approval for our farm out to Africa Energy. Following this approval there are a number of procedural steps to be covered, and then we will be able to complete the assignment of the 30.5% equity in the licence to Africa Energy. The Operatorship of the licence will also be taken over by Africa Energy.
This is of course good news as Africa Energy have a full team of very experienced oil industry personnel who are very knowledgeable in the Southern African region and with the resources needed to progress operational activities. Preparations under our current licence work programme and in anticipation of meeting our future well drilling commitments are fully underway. A full Environmental Impact Assessment for drilling has also already been submitted to the authorities and we have now received confirmation that it has been approved. We will be updating the market further when we get closer to completion.
Iraq, Salah ad-Din licence
We are closely following developments in country and are pleased to being informed about the improving security situation in the region, which is well reported in the international news as well.
It is therefore our intention to initiate steps towards commencing initial scoping activities on the ground in our PSC area to review surface facilities and infrastructure as well to start additional geological and geophysical work. To this end the Board has resolved to seek and engage suitable consultants to assist Crown Energy in this exercise. As Crown Energy is now fully funded to carry out this work, we are looking forward to being able to commence in country activities in the near future.
Madagascar, Manja 3108 licence
Crown Energy has carried out the preparation work for an airborne gravity magnetic survey in accordance with the terms of our work programme and received and shortlisted proposed from three international contractors. Due to the oncoming rainy season, this survey will now be lined up for the early part of the dry season in 2017 which is from May onwards. In the meantime we will be meeting with OMNIS by the end of the year and we continue to seek farm in partners for this licence.
Equatorial Guinea, Block P
We have been in contact with our partners on the licence Vaalco Energy of Houston to discuss its current status and together to request further information from our operator on its plans for 2017. We are aiming to hold a meeting in the near future to consider our best options going forward for the further development of the licence. In the meantime we are not incurring any costs on this licence.
Comment from CEO
”The development in the Company over the last couple of months has been very positive. We have brought a new head investor and owner, adding competence, contacts and last but not least, a solid cash injection revitalising the Company’s balance sheet with repayment of debts and remain a healthy cash position. This has been crucial to the future development of the business and prospects for Crown Energy. We are very pleased with the current situation, where we are now able to concentrate on operational activities for taking our projects further. Things are moving on all assets in the portfolio and at the same time management and Board of Crown has also resolved to look at commercially attractive investment opportunities both inside and also outside of Upstream oil and gas but nevertheless still related to the oil and gas sector, where the Company can identify synergies arising to the benefit of the Company and its shareholders. We will be very pleased to communicate further updates on business activities and news flow as development on existing and/or new projects will occur.” says Andreas Forssell, Crown Energy CEO.
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This information is information that Crown Energy AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out below, at 2:15 PM CET on 30 September 2016.
MORE INFORMATION
Please contact Andreas Forssell, CEO, Crown Energy AB
+46 8 400 207 20
+46 760 15 15 95
ABOUT CROWN ENERGY
Crown Energy is an international oil and gas company engaged in exploration in Africa and Middle East. Growth is created by developing assets in early stages and then maximising value by introducing appropriate industry partners in the development and production stages. For more information please visit www.crownenergy.se.