28 August 2015, Lagos – Midwestern Oil and Gas Company Limited has confirmed the termination of the business arrangement it had with Mart Resources, Inc. It blamed the development on the inability to raise enough funds to finance the transaction.
The statement explained further that the decision to terminate the transaction was derived from the broader macro-environment for emerging market exploration and production companies, as well as the falling oil prices, the volatile Mart share price and the unique nature of Mart’s interest in the Umusadege field by virtue of the RSA, all of which had made it difficult for the company (Midwestern Oil and Gas) to raise the expected finance to drive the project.
However, the statement added that “Midwestern believes that Mart has historically been a strong strategic partner in the development of the Umusadege field. Midwestern anticipates continuing to work with Mart under the defined terms of the existing risk services agreement between the parties (the “RSA”).
“Midwestern also believes that a potential alternative transaction, which brings together both companies, could provide the shareholders of both companies with additional value in the future.
Midwestern will continue to explore strategic alternatives with Mart in addition to alternative funding sources. Midwestern, as the operator of the Umusadege field and Umugini Asset Management Company Limited (pipeline operator), will continue to remain focused on operating and further developing the Umusadege field and supporting the management team of Eroton Exploration and Production Company Limited in operating the recent OML 18 acquisition.
– This Day