Concorde Oil and Gas plc - (PLUS quote suspended)



2009
Concorde’s focus is concentrated on exploring and developing oil and gas properties and projects in the Komi Republic of Russia. Its acquisition of Pechora Energy, ongoing exploration and production for the Luzhkoye oilfield and the new Chikshinskoe exploration licence was largely funded through substantial equity and loan injections by both Altima Partners and Kuwait Energy giving them equity interests of 47% and 37% respectively. Eight wells are now producing 750 barrels a day with over 1000 barrels a day targeted for the end of this year, while plans envisage these rates being significantly increased next year; capital expenditure this year and next of some $20 million is expected to be met out of current cashflows.

Concorde’s share listing was suspended in May 2006 and remains so to this day; the original shareholders have suffered substantial dilution over the years, but should eventually have an investment in a much larger company if and when a market quote is restored.

2008
Concorde was incorporated in August 2005 to locate, evaluate, acquire, explore, develop and operate oil and gas properties and projects primarily in the Russian Federation. After initial difficulties in raising finance for its first major acquisition target, Pechora Energy, Concorde’s shares were suspended in May 2006 and remain so to this day. We await news as to when and where re-listing will be undertaken for what is now a much enlarged entity. Pechora holds an exclusive production licence valid until 2014 for the Luzkoye oil field in the Komi Republic of Russia. The US$33 million acquisition of Pechora, was funded by investment fund managers Altima Partners and Kuwait Energy Limited with a US$41 million injection through the issue of 113 million new Concorde shares at 0.9p a share and convertible loan notes. Ongoing Pechora development plans costing US$125 million will require further funding, and a loan of up to US$50 million is currently being sought from the European Bank for Reconstruction and Development. Original shareholders have faced a substantial dilution, but should have an investment in a much larger company when a market quote is restored. Kuwait Energy now has a 37% interest and Altima funds 44%. A report due soon is expected to show increased production levels as a result of wells in production increasing from two to seven.

2007
Concorde Oil & Gas was incorporated in August 2005 to locate, evaluate, acquire, explore, develop, and operate oil and gas properties and projects primarily in the Russian Federation. The company experienced difficulties in 2006 in raising sufficient finance for its first major acquisition target, Pechora Energy which holds an exclusive production licence valid until 2014 for the Luzkoye oil field in the Komi Republic of Russia. Following the agreement of a financing package with Altima Partners LLP, an offer to acquire Pechora for US$33 million was accepted. Subsequently, Altima injected U$41 million in exchange for the issue of 113 million new Concorde shares valued at 0.9p a share, the value now used by Starvest.

Existing shareholders have faced a substantial dilution of their original stake, but now have an investment in a much larger company as a result of the restructuring, since when the Kuwait Energy Company has acquired part of the Altima stake and now holds one third of the equity. Kuwait Energy appointees have assumed the chairmanship and two non-executive directorships of the company.

Concorde’s listing was suspended in November 2006 and withdrawn from PLUS in October 2007. The company has deferred its intention to seek an alternative listing until late 2008, by which time further expansion and development plans in Russia already under consideration should have been concluded, promising drilling results released, new oil reserve figures officially ratified, production expected to reach 8,000 barrels/day, and any further funding needs by then secured.