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EFORA ENERGY LIMITED - Outcome of the Encha Group Litigation

Release Date: 22/11/2019 14:42
Code(s): EEL     PDF:  
 
Wrap Text
Outcome of the Encha Group Litigation

EFORA ENERGY LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
JSE Share Code: EEL
ISIN: ZAE000248258
(“Efora” or “the Company”)

OUTCOME OF THE ENCHA GROUP LITIGATION

Efora is pleased to provide an update on the appeal of the arbitration judgement awarded in
May 2019 with respect to its claim against Encha Group Limited (“Encha”) wherein the
Company's claim of R115 million was dismissed and the Company was ordered to pay the
cost of the arbitration. The Company had fully impaired this amount in its financial statements
in the prior years.

The Company appealed the outcome of the arbitration, which appeal process has now been
completed and the Appeal Tribunal ruled in favour of Efora and has ordered Encha to now
pay the Company R75 million plus interest at the agreed rate calculated from 1 March 2016
up to the date of payment. The claim amount of R115 million had been calculated based on
an interest accrual from 28 February 2013 to September 2016. Encha has also been ordered
to pay all the costs of the arbitration. These amounts are now due and payable.

Efora’s Interim CEO Mr Matroos said:
“The conclusion of this matter brings to an end another long outstanding legacy issue that
has plagued the organisation for many years. The outcome of the appeal also vindicates the
Company’s efforts to progress this matter to recoup funds for the benefit of our shareholders.”

Johannesburg
22 November 2019

Sponsor
PSG Capital




For further information please contact:

Efora Energy Limited
Tariro Gadzikwa
+27 (0)10 591 2260

About Efora
Efora Energy Limited is a South African based independent African oil and gas company,
listed on the JSE. The Company has a diverse portfolio of assets spanning production in
Egypt; exploration and appraisal in the Democratic Republic of Congo; a midstream project
relating to crude trading in Nigeria and material downstream distribution operations in South
Africa. Our focus as a Group is on delivering energy for the African continent by using Africa’s
own resources to meet the significant growth in demand expected over the next decade.

Date: 22/11/2019 02:42:00
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