05 Oct Proposed sale of Kansas Land Leases and associated equipment
Path Investments plc (TIDM: PATH), the energy and natural resources investment company, is pleased to announce the conditional sale of the Kansas Land Leases and its associated equipment (the “Kansas Assets“) to GasRock Limited, a specialist US-based helium exploration and development company with operations in Kansas. The Kansas Assets are currently included in the assets which Path is to acquire from Zoetic International plc.
The aggregate proceeds payable to Path for the Kansas Assets by GasRock Limited will be approximately £126,000 in cash. The proceeds (which includes interest) which will be settled in equal instalments over a period of 60 months from completion.
Completion of the acquisition will be simultaneous with, and conditional on, completion of Path’s purchase of the Kansas Assets and DT Ultravert from Zoetic International plc (the “Zoetic Acquisition“). Consequently, Path will incur no costs or liabilities in respect of the Kansas Assets, and will not take over the operatorship of the Kansas Land Leases.
Commenting, Christopher Theis CEO of Path, said: “The focus of our forthcoming acquisition from Zoetic International plc has been to secure 100% ownership of DT Ultravert, a technology which we believe has considerable potential. We were delighted to be able to announce last week that we had secured that objective.
“Whilst the Kansas Leases and associated equipment also have unrealised potential, this rapid sale to GasRock generates immediate cash receipts to Path, relieves it of any liabilities in connection with the assets and enables the Company to concentrate its resources on its primary objective.”
Nick Tulloch, who it is proposed will join the Path board on Readmission, is a director of GasRock Limited.
For further information please contact:
|Path Investments plc||C/O IFC|
|IFC Advisory Limited (Financial PR & IR)||020 3934 6630|
|Grant Thornton UK LLP (Financial Adviser)|
|Samantha Harrison||020 7865 2411|
|Harrison Clarke||020 7184 4384|
|Keith, Bayley, Rogers & Co. Limited (Broker)|
|Brinsley Holman||07776 30 22 28|
|Graham Atthill-Beck||07506 43 41 07|