9th Nov 2015 08:05
LONDON (Alliance News) - Natural resource investment firm Polo Resources Ltd Monday said it is reviewing its investment in Signet Petroleum, in which it holds a 42% stake, after Signet shareholders agreed to a distribution of Signet's net cash.
Polo also said Signet has also allowed licences in Burundi and Benin to lapse and has also relinquished another licence in Sierra Leone.
Signet has allowed its licence covering Block C in Burundi and its licence covering Block 03 offshore Benin to lapse due to the sharp decline in oil prices. Signet held an 87.5% stake in the Burundi licence and a 90% stake in the Benin licence.
Signet has also relinquished its interest in its licence covering Block SL-7A-10 offshore Sierra Leone after its operating partner Minexco Petroleum decided against renewing the licence. Signet held a 10% stake in that licence.
In addition, Signet will also not pursue further exploration at the Mnazi Bay North licence offshore Tanzania, in which it has an 80% stake.
Polo also said Signet shareholders have agreed to a distribution of Signet's net cash and an in-specie distribution by its Nigerian subsidiary of shares it holds in Regalis Petroleum Ltd, which is a private company. Regalis has interests in blocks DOA and WD2-2008 in Chad.
Regalis plans to explore those blocks, which have prospects on trend with existing and recent discoveries made nearby, said Polo.
"The amounts of the distributions, which will include a cash element, have yet to be finalised and further announcement(s) will be made in due course. The value ascribed to Polo's investments in Signet and Signet Nigeria will be reviewed in due course in light of the planned distributions," said Polo.
By Joshua Warner; [email protected]; @JoshAlliance
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