We refer to the Company’s announcements on 23 March 2017 and 3 April 2017 respectively in relation to the Securities Commission Malaysia’s and Bursa Malaysia Securities Berhad’s approval for Reach Energy’s application for an extension of time of up to 22 August 2017 for Reach Energy to implement the Placement.

On behalf of the Company, Hong Leong Investment Bank and Maybank Investment Bank Berhad wish to announce that Reach Energy has decided to abort the Placement. Due to the prevailing market conditions, it is challenging for the Company to implement the Placement at an issue price that is in the best interest of the Company and its shareholders. Nevertheless, the Company will continue to explore other avenues of fundraising and make the necessary announcements in due course.  

The proceeds from the Placement were earmarked mainly to settle the remaining purchase consideration of the acquisition of 60% equity interest in Palaeontol B.V., and 60% of the shareholder loans from MIE Holdings Corporation (“Acquisition”), which was completed on 25 November 2016. The Company has the flexibility to settle the remaining purchase consideration, subject to interest being charged in accordance to the terms of the sale and purchase agreement dated 5 March 2016 as disclosed in the circular to shareholders of Reach Energy dated 13 October 2016. As such, the termination of the Placement does not have any effect on the Acquisition.

This announcement is dated 9 August 2017.