Business
SALE OF CONGO (BRAZZAVILLE) INTERESTS
SALE OF CONGO (BRAZZAVILLE) INTERESTS.
About this update from Pharos Energy Plc
[{"type":"text","content":"\n \nRNS Number : 3302S Soco International PLC 25 June 2018 \n\n \nSOCO International plc\n(\"SOCO\" or the \"Company\" or, together with its subsidiaries, the \"Group\")\nSALE OF CONGO (BRAZZAVILLE) INTERESTS\nSOCO is pleased to announce that it has signed and completed a sale and purchase agreement (the SPA) with Coastal Energy Congo Limited (Coastal Energy), to sell its entire shareholding in SOCO Congo Limited (SOCO Congo), which holds the Group's interests in Congo (Brazzaville), for a cash consideration of up to US$10 million and an overriding royalty on future oil and condensate production sold from those interests.\n \nEd Story, President and Chief Executive Officer, commented:\n\"I am delighted that the agreement for the sale of SOCO's Congo (Brazzaville) interests has been signed. In January 2018, the Company announced that its assets in Africa were no longer a core strategic priority, and this is a step that will deliver an exit from a material portion of the non-core African business. The Company continues to focus on creating value from the core Vietnam portfolio and on evaluating acquisition opportunities in a disciplined manner to grow and refocus our business in line with the strategy that we have outlined to the market.\"\n \nOverview of SOCO Congo and Principal Terms of the Transaction\n \nThe interests held indirectly by SOCO Congo comprise a 40.39% operated interest in each of the Lidongo, Viodo, Lideka and Loubana exploitation permits within the former Marine XI Block, located in shallow water offshore Congo (Brazzaville). The sale of the shareholding in SOCO Congo took effect immediately following signature of the SPA, for a cash consideration of up to US$10 million and an overriding royalty interest of up to US$1 per barrel on all future gross production of oil and condensate sold from any of the four exploitation permits. \n \nThe cash consideration of up to US$10 million payable under the SPA is structured as follows:\n \n· US$1 million within 10 business days on the later to occur of:\ni. agreement or expert determination of a statement of net assets or liabilities of SOCO Congo and its subsidiary as at 30 June 2018 (the 30 June Statement); and\nii. execution of the first agreement relat...