Business
Completion of Investment in Hutton Poland
Completion of Investment in Hutton Poland.
About this update from Prospex Energy Plc
[{"type":"text","content":"\n \nRNS Number : 6879U Prospex Oil and Gas PLC 08 April 2016 \n\nProspex Oil and Gas plc\n \n(\"Prospex\" or the \"Company\")\n \nCompletion of Investment in Hutton Poland\nExecution of Loan Agreement\nFurther investments\n \nProspex is pleased to announce that, further to the announcement of 8 January 2016, PXOG County ltd (\"PXOG County\"), Prospex's 100%-owned subsidiary, has completed its acquisition of 49% of Hutton Poland Ltd (\"Hutton Poland\") having paid the outstanding deferred consideration. The total consideration was £620,000. \n \nUpdate on the Kolo license award\n \nThe Company has been advised that following changes at Poland's Ministry of Environment a review of the licensing process has delayed the final Ministerial signature of a number pending licenses. The Kolo license is included in this group. While the Kolo license has been agreed and offered Hutton Poland is still waiting on the final execution of the license.\n \nA map of the Poland, last updated on 29 February 2016, showing the pending and existing in country hydrocarbon concessions can be found here:\n \nhttp://geoportal.pgi.gov.pl/surowce/mapy_koncesyjne\n \nThe Kolo license application area is approximately in the middle of the map centred on and around block 210, shaded grey with red hatchings. In the interim Prospex has been advised that Hutton Poland has continued to work on the license area, continued its engagement with local stake holders and updated the drill location for the proposed 2016 well. Prospex will provide further updates as and when new information is available. \n \nLoan\nThe Company also confirms that PXOG County has today entered into a loan agreement with Hutton Energy Limited (\"Hutton\") to borrow £490,000. The loan is interest bearing from the date of the Kolo License award at LIBOR plus 2%. The loan and interest accrued are repayable on the latter of 31 August 2016 or 90 days after the unconditional award of the Kolo License. The loan is secured against PXOG County's shares and loan notes in Hutton Poland. Hutton Energy's recourse in default is limited to PXOG County's shares and loans note in Hutton Poland.\n \nFurther Investments\nProspex is also pleased to announce further additions to its investment portfolio. In addition to the portfolio that is inherent within t...