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2016-04-05

SHAMARAN ANNOUNCES FINANCING PROPOSAL

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SHAMARAN ANNOUNCES FINANCING PROPOSAL

April 4, 2016 - ShaMaran Petroleum Corp. ("ShaMaran" or the "Company") (TSX
VENTURE: SNM) (Nasdaq Stockholm First North: SNM) refers to the announcement on
March 14, 2016 of a proposed financing arrangement (the “Arrangement”) to
complete its share of the estimated investments required in 2016 in order to
deliver the Atrush field into production, and the announcement on March 31,
2016 which cancelled the Bondholders' Meeting summoned for April 1, 2016 in
light of the new information presented therein.

The Company and General Exploration Partners, Inc. ("GEP"), the Company’s
wholly owned subsidiary which holds a 26.8% interest in the Atrush Block
production sharing contract, have today requested Nordic Trustee to summon a
new bondholders' meeting on April 19, 2016 to approve the Arrangement. The
Arrangement proposed to holders of the USD 150 million bonds (“Existing
Bondholders”) under ISIN NO 0010692882 (the “Existing Bonds”) listed on the
Oslo Stock Exchange, which were issued November 13, 2013, will provide the
Company with additional liquidity in 2016 of approximately USD 33 million net
of transaction costs.

The principal terms of the Arrangement are as follows:

1. GEP issues new USD 17 million super senior bonds (“Super Senior Bonds”).
The Super Senior Bonds will be based on the same agreement as the Existing
Bonds with the same maturity date of November 13, 2018 and an 11.5% coupon
interest payable semi-annually. GEP will have the option to pay the coupon
interest on the Super Senior Bonds in cash or in kind by issuing new bonds
(“PIK Bonds”). GEP has entered into an agreement to underwrite the Super
Senior Bonds with major shareholders; Lorito Holdings SARL and Zebra
Holdings and Investments SARL, companies owned by the Lundin Family Trust,
are underwriters. The subscription period for the Super Senior Bonds is
expected to close on April 22, 2016 at CET 16.00, unless further extended.
2. The Company offers the Existing Bondholders the option to convert up to USD
18 million of Existing Bonds at face value into ShaMaran common shares at a
price based on the market price of the shares at the launch of the
conversion offer. The conversion offer is to be launched following approval
of the Arrangement at the Bondholder's Meeting, with pro rata allocation
among Existing Bondholders upon oversubscription.
3. The Bond Agreement for the Existing Bonds is to be amended so that (i) the
2016 coupon interest (USD 17.25 million before considering any conversion
in 2 above) is settled by issuing new PIK Bonds; (ii) GEP has the option to
pay in cash or in kind (by issuing new PIK Bonds) post-2016 coupon
interest; and (iii) certain waivers and amendments including subordination
of the Existing Bonds´ security to the Super Senior Bonds’ security and an
amendment of terms relating to the book equity ratio.

ShaMaran is considering offering a subsequent private placement of shares for
cash for the remainder if USD 18 million is not converted under point 2 above.

To facilitate the approval process a summons letter will be issued by Nordic
Trustee tomorrow, April 5, 2016, for a Bondholders’ Meeting of Existing
Bondholders on April 19, 2016, 13:00 hours in Oslo. The summons letter with its
appendices will be available on Nordic Trustee’s website www.stamdata.com as
from tomorrow, April 5, 2016. ShaMaran has published an updated corporate
presentation on its website (www.shamaranpetroleum.com).

The conversion offer is subject to final approval by TSX Venture Exchange.

ABOUT SHAMARAN

ShaMaran Petroleum Corp. is a Kurdistan focused oil development and exploration
company with a 26.8% direct interest in the Atrush oil discovery until such
time that the Kurdistan Regional Government has completed the exercise of its
right to acquire up to a 25% interest. The Atrush Block is currently undergoing
an appraisal and development campaign.

ShaMaran is a Canadian oil and gas company listed on the TSX Venture Exchange
and the Nasdaq Stockholm First North Exchange under the symbol "SNM". Neither
the TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release. Pareto Securities AB is the Company’s
Certified Advisor on NASDAQ OMX First North.

FORWARD LOOKING STATEMENTS

This news release contains statements and information about expected or
anticipated future events and financial results that are forward-looking in
nature and, as a result, are subject to certain risks and uncertainties, such
as legal and political risk, civil unrest, general economic, market and
business conditions, the regulatory process and actions, technical issues, new
legislation, competitive and general economic factors and conditions, the
uncertainties resulting from potential delays or changes in plans, the
occurrence of unexpected events and management’s capacity to execute and
implement its future plans. Any statements that are contained in this news
release that are not statements of historical fact may be deemed to be
forward-looking information. Forward-looking information typically contains
statements with words such as "may", "will", "should", "expect", "intend",
"plan", "anticipate", "believe", "estimate", "projects", "potential",
"scheduled", "forecast", "outlook", "budget" or the negative of those terms or
similar words suggesting future outcomes. The Company cautions readers
regarding the reliance placed by them on forward?looking information as by its
nature, it is based on current expectations regarding future events that
involve a number of assumptions, inherent risks and uncertainties, which could
cause actual results to differ materially from those anticipated by the
Company.

Actual results may differ materially from those projected by management.
Further, any forward-looking information is made only as of a certain date and
the Company undertakes no obligation to update any forward-looking information
or statements to reflect events or circumstances after the date on which such
statement is made or reflect the occurrence of unanticipated events, except as
may be required by applicable securities laws. New factors emerge from time to
time, and it is not possible for management of the Company to predict all of
these factors and to assess in advance the impact of each such factor on the
Company’s business or the extent to which any factor, or combination of
factors, may cause actual results to differ materially from those contained in
any forward-looking information.

FOR FURTHER INFORMATION PLEASE CONTACT:

Chris Bruijnzeels
President and CEO
ShaMaran Petroleum Corp.
+41 22 560 8605
chris.bruijnzeels@shamaranpetroleum.com

Sophia Shane
Corporate Development
ShaMaran Petroleum Corp.
+1 604 689 7842
sophias@namdo.com

Robert Eriksson
Investor Relations, Sweden
ShaMaran Petroleum Corp.
+46 701 112615
reriksson@rive6.ch

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