1st Dec 2015 17:30
LONDON (Alliance News) - Polo Resources Ltd Tuesday said it has received some funds from Signet Petroleum Ltd and said it expects to receive further funds in the first quarter of 2016.
Back in November, shareholders of Signet Petroleum agreed to a distribution of Signet's net cash. Polo Resources currently holds a 42% stake in Signet.
On Tuesday, Polo said it has so far received a cash distribution totalling USD691,000 from Signet and a further USD91,000 is expected to be received in the first quarter of 2016 as Signet winds down its activities and settles its liabilities.
Signet shareholders also approved an in-specie distribution by Signet's Nigerian subsidiary of shares it holds in Regalis Petroleum Ltd, which is a private company holding interests in two blocks in Chad that it plans to explore.
Polo said it has now received just under 1.9 million Regalis shares from Signet and another 1.2 million shares from certain other Signet shareholders as part of the winding down of Signet. In total, those shares have a value of just under USD7.0 million, according to Polo.
After securing those Regalis shares, Polo now holds a total of 6.6 million Regalis shares, representing around a 13.7% stake in the company.
Polo said it expects to book a write down of its Signet investment of around USD20.6 million, which is net of the value of the Regalis shares it has acquired.
Polo shares closed down 18.5% to 2.36 pence per share on Tuesday.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
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