10th Jun 2009 18:04
10 June 2009
MAPLE ENERGY PLC
("Maple" or the "Company")
SALE OF INTEREST IN AGUAYTIA ENERGY AND
ENTRY INTO PARTICIPATION AGREEMENT
Maple Energy plc (AIM: MPLE; LIMA: MPLE), an integrated energy company with assets in Peru, announces that one of its partially-owned subsidiaries, The Maple Gas Development Corporation ("MGDC"), has successfully completed the sale of all of its interests in Aguaytia Energy, LLC ("Aguaytia Energy") to an affiliate of Duke Energy Corporation ("Duke") for US$28 million (the "Aguaytia Sale"). Aguaytia Energy is the owner of all of the rights and interests in the Aguaytia Project, an integrated natural gas and electric power generation and transmission project in Peru.
Concurrent with the completion of the Aguaytia Sale, Maple also entered into a participation agreement (the "Participation Agreement") with an affiliate of Duke in relation to the hydrocarbon rights located below the currently producing Cushabatay sand formation in Block 31-C (the "Aguaytia Deep Interest").
Maple will receive approximately US$21.6 million, in cash, as consideration for its pro-rata beneficial interest in Aguaytia Energy, held through MGDC. The minority shareholder of MGDC will receive the remaining amount of approximately US$6.4 million of consideration paid in connection with the Aguaytia Sale. Under the terms of the purchase and sale agreement governing the Aguaytia Sale, MGDC will also retain certain rights to contingent payments, of up to an additional US$7 million in consideration, and certain liabilities, which are not expected to be material. These contingent payments and liabilities are also subject to Maple's pro rata interest in Aguaytia Energy, held through MGDC.
Following its entry into the Participation Agreement, Maple will continue to possess certain rights over the Aguaytia Deep Interest. The Participation Agreement enables Maple to maintain a 33.77% beneficial interest in the rights to the hydrocarbons that are discovered or produced from the Aguaytia Deep Interest, while assuming responsibility for 33.77% of the costs associated with the exploration and exploitation of these prospective rights.
Notwithstanding its divestment of interests in Aguaytia Energy through the Aguaytia Sale, Maple will continue to serve as the operator of the gas related assets of the Aguaytia Project. These services are provided pursuant to an existing services agreement between Aguaytia Energy and one of Maple's affiliates and will continue for a period of up to nine months from the date of closing of the Aguaytia Sale, unless earlier terminated by Duke.
For the year ended 31 December 2008, Maple recognised a loss of US$0.073 million from its ownership in Aguaytia Energy.
The Company intends to use the net proceeds from the Aguaytia Sale to: (i) fund a portion of the equity contribution required for its ongoing ethanol project; (ii) repay outstanding indebtedness; and (iii) general corporate purposes.
Rex Canon, CEO of Maple Energy, commented today:
"I am pleased to announce the sale of our interest in Aguaytia Energy, which monetises an asset for our shareholders while enabling us to retain exposure to the attractive Aguaytia Deep prospect. In addition, the completion of this transaction will strengthen our balance sheet, increase our flexibility, and enable us to concentrate on progressing the exciting Ethanol Project, and our drilling operations on Block 31-E and the Maquia and Agua Caliente oil fields. These core areas of operation remain our priorities for the year ahead, as we continue to develop our assets in Peru."
Notice of Preliminary Results
Maple Energy will release their Preliminary Results on Thursday 11 June 2009, which will be followed by an earnings call at 10.00 am Lima time / 4.00 pm BST. Details of the call will be included in the results release and on Maple's website at www.maple-energy.com
For further information, please contact:
Maple Energy plc (+ 51 1 611 4000)
Jack W. Hanks, Chairman of the Board and Executive Director
Rex W. Canon, Chief Executive Officer, President and Executive Director
Jefferies International Limited (+44 20 7029 8000)
Jack Pryde
Paul Wheeler
Schuyler Evans
Mirabaud Securities Ltd (+44 20 7321 2508)
Peter Krens
Rory Scott
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Emma Woollaston
About Maple Energy
Maple is an integrated independent energy company, listed in London and Lima, with assets and operations in Peru engaging in numerous aspects of the energy industry, including:
- Exploration and production of crude oil and natural gas
- Refining, marketing and distribution of hydrocarbon products
- The development of an ethanol project
Maple was admitted to AIM on 13 July 2007 and trades under the symbol "MPLE". The Company was also admitted to the Lima Stock Exchange on 21 December 2007 where it trades under the same symbol.
Forward-Looking Statements
Statements contained in this document, particularly those regarding possible, projected, or assumed future performance and results, including growth outlook, forecasted economics, operations, production, contracting, costs, prices, earnings, returns, and potential growth, are or may include forward-looking statements. Such statements relate to future events and expectations and as such involve known and unknown risks and uncertainties. These risks and uncertainties include, among other things, market conditions, weather risks, economic and political risks, and other factors discussed in Maple's Admission Document available on the Company's website (www.maple-energy.com). Forward-looking statements are not guarantees of future performance or an assurance that Maple's current assumptions and projections are valid. Actual results, actions, and developments may differ materially from those expressed or implied by those forward-looking statements depending on a variety of factors. Furthermore, any forward-looking statements presented are expressed in good faith and are believed to have a reasonable basis as of the date of this release. These forward-looking statements speak only as at the date of this release, and Maple does not assume any obligation to update any forward-looking statements, whether as a result of new information, future events, or otherwise.
Related Shares:
MPLE.L