25 July 2013
Clontarf Energy plc ("Clontarf" or the "Company") (AIM: CLON)
Settlement of legal dispute
The board of directors of Clontarf Energy announces that legacy legal proceedings in Texas against subsidiaries of the Company and against certain directors of the Company have now been settled. The cost to Clontarf, including legal fees, is £300,000. Hydrocarbon Exploration, a wholly owned subsidiary, has agreed to pay a further £300,000. These payments represent a full and final settlement of the legal dispute.
John Teeling, chairman, commented: "Clontarf Energy is pleased that this legacy legal issue inherited when Clontarf was listed has now been settled. The expense, inconvenience, uncertainty and opportunity costs inherent in proceeding with further litigation in a case ongoing since 2007 led all parties to an agreed settlement without any admission of liability. We have now a strategy in Peru and we are working towards a solution suitable for our Bolivian assets. The Company's focus going forward will be on African oil opportunities".
Two directors of Clontarf, John Teeling and Jim Finn have agreed to lend the Company on an unsecured basis £200,000 (the "First Loan") and £100,000 (the "Second Loan") respectively (together, the "Loans"). It is intended that the Loans, which are non-interest bearing and have no term will be converted into new Clontarf ordinary shares at the next placing.
The Loans are related party transactions for the purposes of AIM Rule 13. The Directors (excluding John Teeling) consider, having consulted with the Company's nominated adviser Shore Capital & Corporate Limited ("SCC"), that the terms of First Loan are fair and reasonable insofar as the Company's shareholders are concerned. The Directors (excluding Jim Finn) consider, having consulted with SCC, that the terms of Second Loan are fair and reasonable insofar as the Company's shareholders are concerned.
The Hydrocarbon Exploration payment of £300,000 has been met through an unsecured loan of two years from Finanzas & Legal Corporativos S.A.C. PFI, an established Peruvian oil and gas financing group. The loan to Hydrocarbon has an interest rate of 10% with an option to convert into shares of Clontarf Energy at the same time and the same price of the next placing.
Enquiries:
Clontarf Energy Plc
John Teeling, Chairman +353 (0) 1 833 2833
Blythe Weigh Communications +44 (0) 207 138 3204
Tim Blythe +44 (0) 7816 924 626
Halimah Hussain +44 (0) 7725 978 141
Eleanor Parry +44 (0) 7551 293 620
Nominated Adviser and Joint Broker
Shore Capital
Pascal Keane/Toby Gibbs, Corporate Finance +44 (0) 207 408 4090
Jerry Keen, Corporate Broking
Joint Broker
Optiva Securities Ltd
Jason Robertson +44 (0) 203 137 1906
Jeremy King +44 (0) 203 137 1904
Pembroke Communications
David O'Siochain +353 (0) 1 649 6486
www.clontarfenergy.com
