Midwestern provides an update on Mart transaction LAGOS, Nigeria, Aug. 27, 2015 /PRNewswire/ - Further to ongoing discussions between Midwestern Oil and Gas Company Limited ("Midwestern") and Mart Resources, Inc. ("Mart"), Midwestern has advised Mart that it is unable to conclude the financing required to consummate the contemplated transaction at the price agreed pursuant to the arrangement agreement, as amended, between Midwestern and Mart (the "Arrangement Agreement"). As a result, Mart has elected to terminate the Arrangement Agreement in accordance with its terms.
Midwestern believes that Mart has historically been a strong strategic partner in the development of the Umusadege field. Midwestern anticipates continuing to work with Mart under the defined terms of the existing risk services agreement between the parties (the "RSA"). Midwestern also believes that a potential alternative transaction, which brings together both companies, could provide the shareholders of both companies with additional value in the future.
Against the broader macro-environment for emerging market exploration and production companies, falling oil prices, the volatile Mart share price and the unique nature of Mart's interest in the Umusadege field by virtue of the RSA, it has not been possible for Midwestern to raise the financing in a manner that preserves value for its shareholders.
Midwestern will continue to explore strategic alternatives with Mart in addition to alternative funding sources. Midwestern, as the operator of the Umusadege field and Umugini Asset Management Company Limited (pipeline operator), will continue to remain focused on operating and further developing the Umusadege field and supporting the management team of Eroton Exploration and Production Company Limited in operating the recent OML 18 acquisition.