Singapore: Loyz Energy reaches agreement to settle final outstanding payment for Thai oil concessions

Singapore: Loyz Energy reaches agreement to settle final outstanding payment
for Thai oil concessions

The payment relates to its subsidiary Loyz Oil Thailand's acquisition of a
20 per cent participating interest in three onshore oil concessions in
Phetchabun Basin from Carnarvon in March 2014.

Loyz said its unit has entered into a supplemental sales and purchase
agreement with Carnarvon to settle the outstanding payment of US$31.2
million (S$43.5 million).

The settlement will be by way of a payment of US$4 million, and a 12 per
cent cash payment on the sales proceeds should Loyz sell the oil concessions
it acquired in Phetchabun Basin in a single tranche to an unrelated third
party for more than US$45 million.

Loyz said that US$4 million would be considered full and final settlement of
the outstanding payment and no further payment is required from the firm,
other than in the event of a sale where sales proceeds exceed US$45 million.

The firm said the agreed payment of US$4 million shall be made in a
combination of internal resources and debt/equity where necessary. The US$4
million comprises a non-refundable cash deposit of US$50,000, and US$3.95
million to be paid by June 30, 2017, in cash or a combination of cash and
new shares.

Mr Jeffrey Pang, chief executive and executive director at Loyz Energy,
said: "This settlement is expected to give the group a significant gain of
approximately US$19.3 million in the current financial year ending 30 June
2017. This, together with the full settlement of our shareholders' loan
earlier in the year with equity, will significantly improve our balance
sheet.

"With this turnaround, we are now ready to pursue new strategic and
accretive opportunities. We will steer towards delivering sustainable and
stable earnings in the long term, as well as to enhance value for
shareholders," Mr Pang added.

Loyz had bought the stake in the oil concessions for US$65 million, of which
US$33 million was paid in full when the acquisition was completed on April
30, 2014. A further US$702,000 was paid by way of cash and shares last year.

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Link to Original Article:
http://www.straitstimes.com/business/companies-markets/loyz-energy-reaches-a
greement-to-settle-final-outstanding-payment-for

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com