PetroMaroc - Response to Recent Trading Activity TORONTO, ONTARIO--(Marketwired - Sept. 14, 2016) - PetroMaroc Corporation plc (TSX VENTURE:PMA), an independent oil and gas company focused on Morocco (the "Company" or "PetroMaroc"), is issuing this press release in response to comment on the recent trading activity in its stock.
The Company, as announced on September 13, 2016 is not aware of any material, undisclosed corporate developments and has no material change to report at this time. The Company will keep the market informed as required.
The Company re-emphasizes its financial position, as announced in the second quarter financial and operating results press release on August 29, 2016, and the Company is currently progressing in completion of the conditions precedent of the binding sale and purchase agreement ("Sale and Purchase Agreement") with Sound Energy plc ("Sound Energy"), including obtaining ministerial approvals in Morocco, Debentureholder approval and final approval of the TSX Venture Exchange. At this time, however, the ministerial approvals in Morocco have not been obtained and although the Company is working diligently with Sound Energy to satisfy the conditions precedent in the Sale and Purchase Agreement, it is currently not known when such consents will be obtained, or at all.
As at June 30, 2016 the Company had a working capital deficit of US$0.8 million (excluding the secured debentures, excluding the secured debenture accrued interest and fees, excluding the unsecured loan and interest, including restricted cash).
The Company continues to review alternatives to address its debt and share capital structure with a focus on alternatives for the Company's Cdn$11.09 million principal amount of secured debentures (the "Debentures"), which currently mature on September 30, 2016 (the "Maturity Date"). Upon default, holders of the Debentures (the "Debentureholders") may declare the Cdn$11.09 million principal amount and all accrued interest due on September 30, 2016 on the Debentures immediately due and payable and to begin proceedings to realize upon the security held in connection with the Debentures.
The Company continues to negotiate settlement agreements with its Sidi Moktar creditors of the remaining unpaid costs in respect to the Sidi Moktar drilling campaign. Settlement with the unsecured creditors is a necessary measure required in order to pursue the Company's efforts to secure additional funding, and facilitate a corporate restructuring of the secured Debentures and share capital.
In order to fund operational commitments due in less than twelve months (approximately US$2.65 million), PetroMaroc will be required to complete additional financings and/or incur additional debt in the future. At this time, the Company does not have the financial resources to repay the Debentures on maturity. These factors represent a material uncertainty that may cast a significant doubt about the Company's ability to continue as a going concern.
PetroMaroc's financial statements for the quarter ended June 30, 2016, together with its Management's Discussion and Analysis in respect of the Company's financial results for the quarter ended June 30, 2016 are available on the PetroMaroc website at www.petromaroc.co or under the Company profile on SEDAR at www.sedar.com.
About PetroMaroc
PetroMaroc is an independent oil and gas company focused on its significant land position in Morocco. The Company has a 50 percent operated interest in the Sidi Moktar licence area covering 2,683 square kilometres and is working closely with Morocco's National Office of Hydrocarbons and Mines (ONHYM) as a committed long-term partner to unlock the hydrocarbon potential of the region. Morocco offers a politically stable environment to work within and has favourable fiscal terms to energy producers. PetroMaroc is a public company listed on the TSX Venture Exchange under the symbol "PMA".