REG - Pennpetro Energy PLC - Shareholder Update

Pennpetro EnergyAnnouncement

20/12/2024 07:00

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RNS Number : 8201Q  Pennpetro Energy PLC  20 December 2024

 

 

Pennpetro Energy PLC

("PPP" or "Pennpetro")

 

Shareholder Update

 

 

 December 20 (th) 2024. Following an internal review by the recently
appointed director and Chairman, the Company wishes to update shareholders and
address the present situation.

 

Stephen Lunn (74), was recently appointed as Chairman of PPP . Stephen has
over 50 years of experience in the global Capital and Equity markets, working
in London , New York, Hong Kong, Dubai and Sydney .

This experience has covered multiple fund raisings, IPO's, Mergers and
Acquisitions together with the management of significant Pension Funds and
private Family Office assets . Involvement in many restructuring and
turnaround situations has provided Stephen with a sound knowledge of
recapitalisation strategies.

The transaction announced in July 2024 with Globalvision has yet to be
completed due to a number of issues arising in Texas. The issues range from
lease ownership challenges, unpaid historic royalty payments and local
creditor claims. These are potentially significant but also resolvable claims.

Additionally, the leases assigned under the Globalvision agreement are secured
by historic corporate loans provided to the Pennpetro group and these secured
debts will require renegotiation in order for any transaction to proceed
further. Discussions to remedy this position are taking place.

Globalvision and the Company are committed to working together to address
these issues and enable the transaction to complete.

In the U.K., the Company has entered into settlement discussions with a major
creditor. This creditor secured a judgment for approximately £500,000
including costs against the Company earlier this year. This liability remained
unaddressed causing the Company to face an immediate winding up order. The
present board have entered into negotiations for settlement and are looking at
a satisfactory outcome.

The Company is therefore taking advice to ensure it is staying within its
solvency parameters. This advice will also address and investigate actions of
previous Directors.

The audit is not expected to be finished until the first quarter of 2025 with
the consolidated management accounts only being recently completed. This was
delayed due to lack of available financial information regarding the US
subsidiaries.

The Company is confident that it can resolve all of the foregoing issues and
is in active discussions for further funding which will support the
restructuring process.

The Company is working closely with advisors and will keep shareholders
informed of progress.

 

 

 

-ENDS-

 

This announcement contains inside information for the purposes of Article 7 of
Regulation 2014/596/EU which is part of domestic UK law pursuant to the
Market Abuse (Amendment) (EU Exit) regulations (SI 2019/310).

 

For further information contact the Company:

 

 

 Pennpetro Energy PLC:

 Stephen Lunn, Chairman                                                                                            stephengarylunn@gmail.com (mailto:stephengarylunn@gmail.com)
 Peterhouse Capital Limited

                                                                                                                   +44 (0) 20 7220 9797

 Flagstaff Strategic and Investor Communications                                                                   +44(0) 207 129 1474

 Tim Thompson                                                                                                      pennpetro@flagstaffcomms.com (mailto:pennpetro@flagstaffcomms.com)

 Alison Allfrey

 Anna
 Probert

 

 

 

 

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