The Independent Directors of Gulfsands Petroleum, the oil and gas company focused on the Middle East region, note the announcement today by Waterford Finance & Investment that it has entered into a binding agreement to purchase 85,077,086 ordinary shares in Gulfsands from ME Investments Limited (“MEI”). Waterford has also acquired rights and obligations under the 2017 Secured Financing Facility held by MEI.

In accordance with the Take-over Code, as a result of the purchase of Shares, Waterford will own approximately 52.45% of the issued share capital of Gulfsands and is required to make a mandatory cash offer for the Shares not already held by Waterford and persons acting in concert with Waterford at a price no less than the highest price paid by Waterford (or persons acting in concert with it) for a Gulfsands share during the 12 months prior to the date of the announcement by Waterford. 

Michael Kroupeev, a non-executive Director and the Chairman of the Company, through his family trust, wholly owns Waterford.  Michael Kroupeev is not considered to be an independent director of Gulfsands by virtue of his interests in Waterford. Mr. Kroupeev will not play a role in the Company’s evaluation of the terms of the Mandatory Offer.

The Independent Directors of Gulfsands are considering the terms of the Mandatory Offer and will write to shareholders in due course. 

Syria – Block 26

Gulfsands is the operator of the Block 26 PSC and holds a 50% working interest in the Production Sharing Contract (“PSC”) along with Sinochem (50% working interest). The Group is not presently involved in any production or exploration activities on Block 26 as force majeure has been declared in respect of the contract following the introduction of EU sanctions against Syria.

KeyFacts Energy: Gulfsands Petroleum Syria country profile