African Petroleum Announce Interim Financial Report for the Fourth Quarter 2015

On 21 December 2015 the Company announced that it had entered into a new Production Sharing Contract (“PSC”) with Ophir Energy plc covering the Company’s CI-513 licence area in Côte d’Ivoire. Ophir Energy will make a contribution of US$16.9 million towards African Petroleum’s back costs in relation to the block and holds a 45% operated interest in the PSC.
African Petroleum holds a 45% interest and Petroci (the National Oil Company of Côte d’Ivoire) holds a 10% carried interest in the PSC. The transaction represents a significant achievement of a key corporate milestone by the Company, particularly in light of the persistently challenging environment in the oil sector.

    HIGHLIGHTS
  1. Mr Jens Pace and Mr Stephen West were appointed to the Board of the Company as Executive Directors, and Mr Mark Ashurst, Mr Gibril Bangura and Mr Jeffrey Couch resigned from the Board as Non-Executive Directors.
  1. In October 2015 the Company completed a private placement to certain existing and new investors raising approximately US$2 million through the issue of 9,691,937 new fully paid ordinary shares at a subscription price of NOK 1.70 per share.
  1. Advanced farm-out discussions are progressing with numerous interested parties across the Company’s assets, including The Gambia and Senegal. Recent exploration success by third party operators in the area has led to a significant increase in the level of interest in these assets.
  1. On 2 December 2015 the Company announced that its wholly owned subsidiary, European Hydrocarbons Limited (“EHL”), had entered into the First Extension Period on the SL-03 licence, offshore Sierra Leone, with a modified work programme, minimum expenditure requirement and social obligations in favour of EHL.
  1. In accordance a the special resolution passed at the Company’s General Meeting held on 21 December 2015, the Company’s shares were voluntarily suspended from quotation on the National Stock Exchange of Australia (“NSX”), prior to being removed from the CHESS sub-register on 31 December 2015 and being formally de-listed from the NSX before open of trading on 4 January 2016.
  1. Significant cost savings have been maintained during the quarter through a reduced staff headcount, reduction in salaries of remaining staff of 20-45%, streamlining of the Board, reducing directors’ fees and by de-listing the Company’s shares from the NSX.
  1. Approximately US$0.6 million cash at bank as at 31 December 2015, together with US$12.6 million restricted cash.
  1. On 26 October 2015 the Company consolidated the issued capital of the Company on the basis of one share for every ten shares held, reducing the shares on issue from 1,066,113,157 shares to 106,611,316 shares.
  1. During the quarter the Company changed its accounting policy for exploration and evaluation expenditure from the full cost method to the successful efforts method.

For further information see: Africa Petroleum Interim OAX Q4 2015 – FINAL
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