Business
COVID-19 Update
COVID-19 Update.
About this update from Chill Brands Group Plc
[{"type":"text","content":"\n \n \n RNS Number : 3202I\n Zoetic International PLC\n 01 April 2020\n \n \n \n \n THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSIDERED TO BE IN THE PUBLIC DOMAIN.\n \n \n \n \n \n \n \n \n 1 April 2020\n \n \n \n \n \n Zoetic International plc \n \n \n (\"Zoetic\" or the \"Company\" or the \"Group\") \n \n \n \n \n \n COVID-19 Update\n \n \n \n \n \n Zoetic, the London listed vertically integrated CBD company, provides a further update regarding the impact of Covid-19.\n \n \n \n \n \n Oil & Gas Division\n \n \n \n \n \n The steep fall in oil & gas prices has inevitably put considerable pressure on margins at the Company's East Denver project, where it has an interest in eight producing wells, and the project is operating at a loss given the current oil price. The operator has determined that the most prudent course of action is to curtail production until such time as there is a recovery in oil & gas prices. Five wells will be shut in, with the remaining three choked back to produce around 240 barrels of oil equivalent per day between them. This is calculated to generate sufficient revenue to cover the fixed overheads of the project and to ensure that none of the partners is obliged to cover these from their own resources.\n \n \n \n \n \n The Board is supportive of the operator's proposal, although its consequence is to remove the sole revenue stream of Zoetic's oil & gas division. A considerable amount of progress had been made since September last year in reducing this division's overheads and ceasing unnecessary expenditure, but certain liabilities do remain, including an outstanding bank facility. This was originally drawn down as US$500,000 but the Company has adopted a policy of repaying the principal in line with the projected revenue from the East Denver project and the current outstanding balance is US$325,000. Zoetic is in constructive dialogue with the bank about a rescheduled payment plan and, although final details are to be agreed, the bank is supportive in principle.\n \n \n \n \n \n In the circum...