LAGOS, Nigeria, Aug. 27, 2015 /PRNewswire/ - Further to ongoing discussions between Midwestern Oil and Gas Company Limited ("Midwestern") and Mart Resources, Inc. ("Mart"), Midwestern has advised Mart that it is unable to conclude the financing required to consummate the contemplated transaction at the price agreed pursuant to the arrangement agreement, as amended, between Midwestern and Mart (the "Arrangement Agreement"). As a result, Mart has elected to terminate the Arrangement Agreement in accordance with its terms.
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.
Against the broader macro-environment for emerging market exploration and production companies, 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, it has not been possible for Midwestern to raise the financing in a manner that preserves value for its shareholders.
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.
Forward Looking Statements and Risks
This press release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words ''expect'', ''anticipate'', ''continue'', ''estimate'', ''guidance'', ''objective'', ''ongoing'', ''may'', ''will'' and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the foregoing, this press release contains forward-looking information and statements pertaining to, among other things, the nature of the continued relationship of the parties and any potential future transaction between the parties.
Midwestern believes the material factors, expectations and assumptions reflected in the forward-looking information and statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The forward-looking information and statements included in this press release are not guarantees of future performance and should not be unduly relied upon. Such information and statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements.
The forward-looking information and statements contained in this press release speak only as of the date of this press release, and Midwestern does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as may be required pursuant to applicable laws.
SOURCE Midwestern Oil and Gas Company Limited