Sep 2016 Financial News

Mora Ven Holdings Limited - Notice to Shareholders

Sep 02, 2016

30th August 2016

Dear Member,

On the 4th of December 2015 Mora Oil Ventures Limited issued a press release with regard to the then state of affairs concerning its relationship with Repsol and the stop in production.

For a period of over nine months thereafter we have been engaged in the process of negotiations with Repsol, more than once believing that a restart in production was foreseeable – only to have new obstacles arise.

I am to report that we have signed a new purchase agreement with Repsol, and intend shortly to resume production from the Mora A platform. The agreements arrived at with the TSP Owners are some forty one pages in length. We are presently installing the infrastructure which would enable our production to be metered according to API standards placing new meters on the Repsol platform where our pipeline connects.

Within a month we intend to re start production. The cost structure of the Mora Ven Group is in the process of being further flattened to remain profitable at the new price paradigm.

We are seeking a partner to drill well six from the platform, which from earlier seismic test show a large find within reach of the platform. The snubbing unit we purchased last year was purchased for the drilling to connect these prospects. We have four slots available on the Platform to engage this prospect.

Solaris has been steady, though the lower price of energy, which started in late 2014, has impacted the economic rational for changing from non-renewable to renewable sources. This has severely impacted the overall business in Trinidad and Tobago and the region. Recently we have seen a 20% drop in cost of inputs, and an increase in electricity utility prices, which has resulted in much more business opportunities to the end of the year.

I thank you for your patience which will be rewarded.

Sincerely,
George M. Nicholas III
Chairman

Source:
The Trinidad and Tobago Stock Exchange Limited
Friday September 2, 2016