ST. HELIER, Jersey, April
15, 2013 /CNW/ - EastSiberian Plc ("EastSiberian " or the
"Corporation"), an international junior oil exploration company
incorporated in the Bailiwick of Jersey, announces that
the previously announced Farm-in Agreement with East Siberian
Resources Ltd. ("ESR") expired on March 31,
2013, due to unsuccessful fund raising initiatives. The
Company is currently engaged with specific investors examining
existing producing properties and other development opportunities
in Russia that may be a viable
alternative to the farm-in agreement.
Farm-in Agreement
The Farm-in Agreement announced on June 27, 2012, provided the Corporation an
opportunity to earn up to a 51% equity stake in two wholly-owned
Cyprus subsidiaries of ESR,
Elranio Holdings Ltd. ("Elranio") and Lesona Holdings Ltd.
("Lesona") collectively, the ("Holding Companies"). Elranio
indirectly holds a Russian entity, a 100% interest in an
exploration and production license located on the eastern onshore
portion of the Sakhalin Island. Lesona indirectly holds one oil
production licence and one exploration and production licence
located in Eastern Siberia.
The Corporation was pursuing fund raising
initiatives for approximately USD$50
million to fully fund the work program contemplated by the
Farm-in Agreement (the "Work Program") and for general corporate
purposes. The fund raise was being pursued by a brokered
private placement of common shares of the Corporation at a market
determined price (the "Private Placement"). Given the difficult
financial investment conditions, the Corporation was unsuccessful
in obtaining the investment funds specific to this farm-in
agreement by March 31, 2013, and the
farm-in agreement expired.
The Corporation is presently involved with some
specific investors looking at various strategic oil property
investments that could involve existing oil production and/or
development in Russian-based oil properties. The Corporation will
report on the results of these investment discussions in due
course.
Forward looking Statements or
Information
Certain statements included in this news
release constitute forward-looking statements or forward-looking
information under applicable securities legislation. Such
forward-looking statements or information are provided for the
purpose of providing information about management's current
expectations and plans relating to the future. Readers are
cautioned that reliance on such information may not be appropriate
for other purposes, such as making investment decisions.
Forward-looking statements or information typically contain
statements with words such as "anticipate", "believe", "expect",
"plan", "intend", "estimate", "propose", "project" or similar words
suggesting future outcomes or statements regarding an outlook.
Forward-looking statements or information concerning EastSiberian
in this news release may include, but are not limited to statements
or information with respect to: business strategy and objectives;
development, exploration, acquisition and disposition plans, and
the timing and results thereof. Forward-looking statements or
information are based on a number of factors and assumptions which
have been used to develop such statements and information but which
may prove to be incorrect. Although EastSiberian believes that the
expectations reflected in such forward-looking statements or
information are reasonable, undue reliance should not be placed on
such statements because EastSiberian can give no assurance that
such expectations will prove to be correct. In addition to other
factors and assumptions which may be identified in this news
release, assumptions have been made regarding, among other things:
the timely receipt of any required regulatory and shareholder
approvals; the ability of EastSiberian to obtain qualified staff,
equipment and services in a timely and cost efficient manner; and
the ability of EastSiberian to obtain financing on acceptable
terms. Readers are cautioned that the foregoing list is not
exhaustive of all factors and assumptions which have been
used.
Forward-looking statements or information are
based on current expectations, estimates and projections that
involve a number of risks and uncertainties which could cause
actual results to differ materially from those anticipated by
EastSiberian and described in the forward-looking statements or
information. These risks and uncertainties may cause actual results
to differ materially from the forward-looking statements or
information.
The forward-looking statements or information
contained in this news release are made as of the date hereof and
EastSiberian undertakes no obligation to update publicly or revise
any forward-looking statements or information, whether as a result
of new information, future events or otherwise unless required by
applicable securities laws. The forward-looking statements or
information contained in this news release are expressly qualified
by this cautionary statement.
Neither the TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this release.
SOURCE EastSiberian Plc