BLUEBIRD ENERGY PLC
(AIM: BBE)
AGM Statement
At the Bluebird Energy plc ("Bluebird" or "the Company") Annual General meeting to be held at 11.00am today, James Ede-Golightly, Chairman will make the following statement:
At the Company's Revloc project in Pennsylvania all
seven of its wells have been plugged and abandoned, as
required by state law. The plugging will allow the recovery
of certain performance bonds held with the state which,
along with the disposal of fixed assets and certain coal
rights will largely offset the costs of the exercise to the
JV partners. The Company has disposed of its 5.3 per cent.
royalty interest in Cimarron properties for $26,000 which
was paid on completion in cash. Marketing efforts for the
sale or farm-out of the Solitaire continue. While initial
research is supportive of the potential of the acreage as a
Mississippian oil play, parts of the licence area expire
from Q2 2013 and a recent State of Colorado oil and gas
lease auction received no bid on parcels in Kit Carson
County.
Following a review of strategy, the board has decided to
broaden the extent of Bluebird's investment focus to
include opportunities outside the oil and gas sector. This
decision reflects the board's investment experience and
focus on maximising long term value for shareholders
principally on maximising growth in net asset value per
share.
In the short term, Bluebird remains focused on maximising the value of its shareholding in Wessex Exploration PLC as well as realising value from the Solitaire acreage. Having substantially completed the rationalisation of its cost base, the company will now establish an investment capability while retaining overheads at a modest level. To this end Bluebird has secured an agreement with ORA Group Services Limited to provide core accounting and secretarial services. As ORA Group Services Limited is an associated company of ORA (Guernsey) Limited, which owns approximately 25.8 per cent. shares in Bluebird, this constitutes a related party transaction. The directors, having consulted with the Company 's nominated adviser, WH Ireland, consider the transaction to be fair and reasonable insofar as its shareholders are concerned.
Commenting on today's announcement, James Ede-Golightly, Chairman of Bluebird, said:
"These developments reflect substantial progress in
rationalising the company's US oil and gas portfolio
while allowing the company and its shareholders to benefit
on the substantial opportunities within the broader
investment universe."
Contacts | |
Bluebird Energy plc | |
James Ede-Golightly | +44 (0) 1225 428139 |
WH Ireland Limited | |
John Wakefield/Marc Davies | +44 (0) 117 945 3470 |
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