Statement Re: Pre-Conditional Offer for the Company


    JERSEY, Channel Islands, Oct. 28 /CNW/ - The Board of Arawak notes
today's announcement by Rosco S.A., a subsidiary of Vitol Holding B.V.
("Rosco"), regarding a pre-conditional cash offer for the Company. Rosco has
announced that subject to certain pre-conditions, it intends to make a public
offer for the entire issued and to be issued share capital of Arawak at a
price of CAD $0.90 (44.9 pence) per share payable in cash (the "Offer"). Vitol
Holding B.V. and its subsidiaries ("the Vitol Group") currently own an
aggregate of 75,668,399 shares representing approximately 41.43 per cent. of
the issued common shares in Arawak. These shares are held through Rosco, which
holds 67,315,812 common shares, and Vitol B.V., which holds 8,352,587 common
    The Board of Arawak believes that the timing of this unsolicited Offer is
opportunistic and does not reflect the underlying value of Arawak's shares.
Therefore, Arawak shareholders are strongly recommended to take no action at
this stage. A further announcement will be made in due course.
    The full text of the Vitol announcement can be viewed at:
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<a href="">3158&source=RNS</a>

    Pursuant to Rule 2.10 of the City Code, Arawak confirms that it has
182,644,452 common shares of no par value in issue and admitted to trading on
the Main Market of the London Stock Exchange ("LSE") and the Toronto Stock
Exchange ("TSX").

    Dealing Disclosure Requirements

    Under the provisions of Rule 8.3 of the Takeover Code (the "Code"), if
any person is, or becomes, "interested" (directly or indirectly) in 1% or more
of any class of "relevant securities" of Arawak, all "dealings" in any
"relevant securities" of that company (including by means of an option in
respect of, or a derivative referenced to, any such "relevant securities")
must be publicly disclosed by no later than 3.30 pm (London time) on the
London business day following the date of the relevant transaction. This
requirement will continue until the date on which the offer becomes, or is
declared, unconditional as to acceptances, lapses or is otherwise withdrawn or
on which the "offer period" otherwise ends. If two or more persons act
together pursuant to an agreement or understanding, whether formal or
informal, to acquire an "interest" in "relevant securities" of Arawak, they
will be deemed to be a single person for the purpose of Rule 8.3.
    Under the provisions of Rule 8.1 of the Code, all "dealings" in "relevant
securities" of Arawak by a potential offeror or by Arawak, or by any of their
respective "associates", must be disclosed by no later than 12.00 noon (London
time) on the London business day following the date of the relevant
    A disclosure table, giving details of the companies in whose "relevant
securities" "dealings" should be disclosed, and the number of such securities
in issue, can be found on the Takeover Panel's website at
    "Interests in securities" arise, in summary, when a person has long
economic exposure, whether conditional or absolute, to changes in the price of
securities. In particular, a person will be treated as having an "interest" by
virtue of the ownership or control of securities, or by virtue of any option
in respect of, or derivative referenced to, securities.
    Terms in quotation marks are defined in the Code, which can also be found
on the Panel's website. If you are in any doubt as to whether or not you are
required to disclose a "dealing" under Rule 8, you should consult the Panel.

    Notes to editors

    Arawak's Common Shares are listed for trading on both the TSX and the LSE
under the symbol "AAK". The Company is engaged in the exploration, development
and production of oil and natural gas in Kazakhstan, Russia and Azerbaijan. In
Kazakhstan, the Company holds five producing fields and two exploration
blocks. The Company has a 40% participating interest in the Saigak producing
block acquired in June 2008. The remaining assets are held through its 100%
wholly-owned subsidiary Altius Energy Corporation ("Altius"). Altius' main
producing field is Akzhar with smaller fields at Besbolek, Karataikyz and
Alimbai. The two exploration blocks East Zharkamys III and Tamdykol are also
situated in western Kazakhstan. Arawak's producing assets in Russia are held
through ZAO PechoraNefteGas ("PNG") and LLC NK Recher-Komi ("Recher-Komi") in
which Arawak has a 50% interest with the remaining interest being held by
Lundin Petroleum AB. Also in Russia, Arawak holds a 100% interest in the
Kymbozhyuskaya exploration block and in the South Sotchemyu appraisal block.
In Azerbaijan, the Company's asset is its interest in the Exploration
Development and Production Sharing Agreement ("EDPSA") for the South West
Gobustan oil and gas fields. CGL, a company registered in Anguilla, British
West Indies, in which the Company has a 37.17% interest, holds an 80% interest
in the EDPSA with the remaining 20% held by an affiliate of SOCAR. The
remaining 62.83% share in CGL is held by two affiliates of the project
operator, CNPC.

For further information:

For further information: Arawak Energy Limited, Alastair McBain, Charles
Carter, Tel: +44 20 7973 4285; JPMorgan Cazenove, Barry Weir, Steve Baldwin,
Tel: +44 20 7588 2828; Oriel Securities Limited, Richard Crawley, Natalie
Fortescue, Tel: +44 20 7710 7600; Brunswick Group LLP, Patrick Handley, Tel:
+44 20 7404 5959

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Arawak Energy Limited

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