Gasol Posts Full Year Results (UK)

Gasol plc, the West African energy development company, announced  its preliminary results for the year ended 31 March 2013. 

Operational highlights

· Board strengthened by the appointments of Dr Rilwanu Lukman as the new non executive chairman and Fassine Fofana as a non executive director;
· The Company’s refocused strategy aims to make Gasol the leading supplier of gas for power generation in West Africa. It aims to:

• develop its own gas reserves in the Gulf of Guinea and to supply this gas to power projects in West Africa; and
• until natural gas reserves become available, Gasol is working on plans that will secure availability of regasified LNG as an interim fuel supply to support current power generation requirements in the West African region;

· Good progress on development of the Company’s Liquefied Natural Gas (LNG) Import Project in Benin;
· Option Agreement signed, and extended for a further 6 months to 24 February 2014, for the acquisition of African Power Generation Limited (“AfGen”), which has an existing pipeline of LNG Import Projects;
· Key Strategic Alliances signed with Socar Trading S.A. and by AfGen with Dredging International to support the Company’s LNG Import Project in Benin;
· Joint venture agreement signed with Societe BenGaz S.A, (Bengaz S.A) for the establishment of a JV company (to be named “Cogaz”) and the distribution and sale of natural gas in Benin and Togo;
· Memorandum of Understanding signed for Cogaz to supply gas to Communaute Electrique du Benin, the electric authority for both Benin and Togo;
· Memorandum of Understanding between AfGen and Ghana National Gas Company Ltd to explore the establishment of various joint venture arrangements for the supply of natural gas into Ghana.

Financial highlights

· Cash at bank of £6.75 million as at 31 March 2013;
· Successful placement of £13.2 million ($20 million) bond facility with institutional investors;
· £670,825 ($1 million) in new funds in the form of a convertible loan from Socar Trading S.A.;
· Repayment of existing debt of £2.5 million from African Gas Development Corporation Limited;
· Successful restructuring of the Company’s share capital through a 50 into 1 consolidation of existing shares;
· Roll-over of existing £694,000 convertible loan facility from Banque Benedict Hentsch & Cie S.A.;
· Losses for the year increased to £4.03 million (2012: £1.99 million);
· Net cash expenditure on operating activities increased to £3.47 million (2012: £1.48 million) as a result of increased project development activities.

Rilwanu Lukman, Gasol Chairman, commented: “We believe that Gasol’s LNG to power strategy will meet the requirements of governments in West Africa. The Company’s success in attracting superior alliance partners and the speed with which it has secured the rights to the Benin project have placed the Company in an excellent position to transition from a development company to a revenue earning operating company.

“I look forward to seeing our first projects reach completion and to making Gasol an African gas champion providing gas for the next generation of Africans.”

Benin LNG Import Project

Significant progress in Gasol’s project in Benin has been made. When completed, the project will be capable of injecting a substantial volume of gas per day into the West African Gas Pipeline (“WAGP”) for distribution to Benin, Togo and Ghana. Gasol is currently in negotiations to conclude firm off-take contracts for the Benin and Togo markets. The Company is also working with AfGen to secure an arrangement for sales into Ghana.

Negotiations are also proceeding satisfactorily with the Government of Benin in respect of the concession for the LNG import facility, with the West African Gas Pipeline Company (“WAPCO”) in respect of the interconnection with the WAGP and with potential lenders to secure the financing commitments necessary to implement the project. The Company intends to focus on bringing this project to financial close as quickly as possible.

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LNG World News Staff, August 29, 2013