PA Resources Publishes Reorganisation Plan and Request for Composition Proceedings

Regulatory News:

PA Resources AB ("the company”) (STO:PAR) (OSE:PAR) will today publish the Reorganisation Plan prepared by the company’s administrator, lawyer Lars Söderqvist. The Reorganisation Plan includes, amongst other things, the Composition Plan, an Estate Inventory per 30 June 2015, the administrator’s statement of support for the plan, a certification of at least 40% support from the creditors for the plan as well as the Administrator’s Report. Included in the plan are also the terms and conditions of the reorganisation notes (loan) which was entered into in June 2015 (see the press release "PA Resources secures funding for 2015”, published 22 June 2015). The reorganisation notes have priority over all other claims on the company.

The company will today also hand in a request for composition proceedings to the Stockholm District Court. The court is expected to respond to the request shortly and set a date for the composition proceedings to be held within 3-5 weeks from today’s date.

Below follows a summary of the key points of the submitted Reorganisation Plan. For more detailed information see the full Reorganisation Plan published on the company website www.paresources.se.

The Composition Plan in brief

Creditors with claims of up to and including SEK 100,000 are entitled to receive full payment no later than 26 March 2016.

Creditors with claims in excess of SEK 100,000 and without a bilateral agreement with the company are entitled to receive the amount of SEK 100,000 as well as an amount corresponding to 25% of their claim that exceeds SEK 100,000 by the 26 March 2016. Alternatively these creditors have the option to join the group of creditors with repayment over a longer period of time as described below.

The creditors with the largest claims have signed agreements with the company (or, in the case of the holders of the SEK and NOK Bonds, will be invited to vote on changes to the terms and conditions of the Bonds) pursuant to which they will be repaid over a longer period of time out of the Available Cash Flow as defined by the Reorganisation Plan. It is the company’s and administrator’s view that these creditors will likely receive less than 25% of their total claim. When all the Available Cash Flow has been paid out or at the latest on the 27 December 2017 these creditors have agreed to convert their outstanding claims to equity through an offset issue on the basis that irrespective of the value of the claims those creditors will receive 95% of the company’s share capital after the conversion. This means that current shareholders share of the company’s share capital will likely not exceed 5% after the conversion of the outstanding claims.

Estate Inventory and delisting of the share

Included in the reorganisation plan is the Estate Inventory of the company’s assets and liabilities as of the 30 June 2015. At the time of the estate inventory PA Resources AB had assets to a book value of SEK 1,205 million and liabilities to a value of SEK 2,016 million.

In order to reduce costs the company has also agreed with its creditors that upon the completion of the corporate reorganisation, and when appropriate and practicable, apply for delisting of the PA Resources share from the Nasdaq OMX Stockholm exchange.

Invitations to the bondholders’ meetings will be sent in the coming days.

Stockholm 9 September, 2015 PA Resources AB (publ)

PA Resources AB (publ) is an international oil and gas group which conducts exploration, development and production of oil and gas assets. The Group operates in Tunisia, Republic of Congo (Brazzaville), United Kingdom, Denmark, Netherlands and Germany. PA Resources has oil production in Tunisia. The parent company is located in Stockholm, Sweden. PA Resources’ net sales amounted to SEK 603 million in 2014. The share is listed on the NASDAQ OMX in Stockholm, Sweden. For additional information, please visit www.paresources.se.

The above information has been made public in accordance with the Securities Market Act and/or the Financial Instruments Trading Act. The information was published at 15:50 CET 9 September 2015.

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