PetroMaroc Corporation plc (TSX VENTURE:PMA), an independent oil and gas company focused on Morocco (the "Company" or "PetroMaroc") is pleased to announce its financial and operating results for the year ended December 31, 2016, and the fourth quarter of 2016.
Commenting, D. Campbell Deacon, Chief Executive Officer of PetroMaroc, said: "During 2016, the Company announced and significantly advanced the binding sale and purchase agreement with Sound Energy plc ("Sound Energy"). In early January 2017, the Company announced all conditions precedent were successfully fulfilled with the transaction completing, following which, PetroMaroc's consideration shares in Sound Energy enable the Company to be positioned to leverage off Sound Energy's operating capability in country and balance sheet whilst retaining material upside with the Sidi Moktar Net Profit Interests. We look forward to the near-term testing of Kechoula by Sound Energy - a rig is being mobilised to Sidi Moktar, and is expected to arrive in May 2017, upon which, Sound Energy will re-enter and test the two existing wells on the Kechoula discovery which, subject to initial well results, may include a side-track and an extended well test thereafter." "During 2016, the Company successfully restructured the Cdn $11.09 million principal amount of secured debentures, which were rolled into a new class of secured redeemable, debentures, issuable in series, with all principal and interest due and payable in full on January 31, 2018. Through 2016, monthly general and administrative costs totalled US$0.14 million, representing a 10% decrease in comparison to 2015 (US$0.16 million) and a 43% decrease in comparison to 2014 (US$0.25 million). During 2016, the Company secured the release of the US$2.5 million Sidi Moktar bank guarantee restricted cash, disposed of surplus inventory, and closed a Cdn$0.39 million secured non-convertible debenture financing."
PetroMaroc exited 2016 with cash of US$2.1 million and a working capital deficit as at December 31, 2016 of US$0.2 million (excluding the secured debentures, excluding the secured debenture accrued interest and fees, excluding the unsecured loan and interest, including restricted cash).
During 2016, the Company carefully reviewed its secured debentures, and equity capital. In late 2016, following shareholder approval, the Company successfully restructured the Cdn $11.09 million principal amount of secured debentures (the "Debentures"), with the Debentures being rolled into a new class of secured redeemable, debentures, issuable in series, with all principal and interest due and payable in full on January 31, 2018.
The Company continued its discussions with its Sidi Moktar creditors to negotiate settlement of the remaining unpaid costs in respect to the Sidi Moktar drilling campaign. Subsequent to the year-end the Company successfully executed settlement agreements with a significant proportion of its unsecured creditors, and the Company continues to engage with the remaining unsecured creditors to execute settlement agreements.
PetroMaroc today filed its annual financial statements for the year ended December 31, 2016, together with its Management's Discussion and Analysis in respect of the Company's financial results for the year ended December 31, 2016. These documents are available on the PetroMaroc website at www.petromaroc.co or under the Company profile on SEDAR at www.sedar.com.
Sidi Moktar onshore:
PetroMaroc Corporation plc is an independent oil and gas exploration company. PetroMaroc holds a substantial share position in Sound Energy plc, and net profit interests in the Sidi Moktar licence (onshore Morocco), which the Company considers to be a committed long-term partner who will work to unlock the hydrocarbon potential of the Essaouira region. PetroMaroc is a public company and its common shares are listed on the TSX Venture Exchange under the symbol "PMA".
SOURCE: PetroMaroc Corporation plc
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