Primorus Investments PLC
("Primorus" or the "Company")
SOA Energy Signs US$8.3m Farm-in Agreement with Delek Drilling
Primorus Investments plc (AIM: PRIM, NEX: PRIM) is pleased to advise shareholders that it has received formal confirmation from its investee company, SOA Energy ("SOA"), that it has now signed a farm-in agreement with Delek Drilling ("Delek"), one of Israel's largest Oil & Gas companies with a market capitalisation of circa US$3.5bn. According to the agreement, Delek will invest up to US$8.3m, comprising US$1.8m to reimburse SOA for licence back-costs and bank guarantees, and up to US$6.5m to cover the expected cost of an appraisal well and production test (gross). In return, Delek will assume a 25%, non-operated stake in each of the Ofek and Yahel licences, leaving SOA with a 45% stake in each permit.
This finance will allow SOA to push forward with the drilling of the Ofek appraisal well and the SOA operational team is working alongside Delek to prepare for drilling. SOA and Delek hope to be in a position to spud the well this summer. The well is expected to take circa 40 days to drill, with another 40 days of testing to follow.
SOA sees the formalisation of its partnership with Delek as a major endorsement of the quality of the SOA licences.
Primorus owns 14,977 shares in SOA it purchased for approximately £100,000 in 2017.
Alastair Clayton, Executive Director, commented "We are delighted that SOA have now completed the Farm-in agreement with Delek and can now move their long-awaited plans for re-entering the Ofek discovery with an appraisal well as soon as this summer. As an early investor in SOA we are now well placed to benefit from the Farm-in and any uplift in the value of our investment resulting from delineating commercial hydrocarbon reserves and resources."
"This is a key unlock moment for our investment in SOA and we should be able to get a clear read on the uplift in value of our investment as SOA move to undertake a UK IPO in 2019 should the upcoming appraisal drilling work at Ofek prove to be positive."
"We look forward to the upcoming work at Ofek commencing soon and will keep shareholders updated as to the progress and results of the drilling and appraisal programme."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.
For further information, please contact:
Primorus Investments plc: +44 (0) 20 7440 0640
Nominated Adviser: +44 (0) 20 7213 0880
Cairn Financial Advisers LLP
James Caithie / Sandy Jamieson
Broker: +44 (0) 20 3621 4120
Turner Pope Investments