The Board of Leed Petroleum says that the Company has reached an agreement with UniCredit Bank AG (UniCredit), whereby UniCredit has agreed, conditional on the payment of a fee, to release the Company from the guarantee and security arrangements it had provided to UniCredit pursuant to its loan facilities. The Company has now had all its material creditors agree to release the Company from its guarantee obligations to them. The Company now has no material assets or liabilities.

The Company is now in a position to proceed with the proposals to recapitalise the Company as an investment vehicle as announced on 6 May 2011 (the "Proposals"). As part of the Proposals, the Company intends to reclassify itself as an investing company under the AIM rules for Companies in order to invest in the natural resources industry, with a focus on the oil and gas sector.

The Board is also pleased to announce the appointment of Rivington Street Corporate Finance Limited ("Rivington") as broker to the Company. As part of the Proposals, Rivington has conditionally placed £2,135,000 of zero coupon unsecured loan notes ("Loan Notes") which are convertible at the option of the Company into new ordinary shares in the Company (the "Placing"). It is intended that conversion of all the Loan Notes will take place immediately following their issue. In order for the Placing to occur the Company will be required to undertake a reorganization of its share capital that will include the creation of new deferred shares and the consolidation of existing ordinary shares.

The Company also announces the resignation of Robert Alcock, Anthony Stalker, Peter Hirsh, James Slatten and Howard Wilson as the directors of the Company with immediate effect. Robert Adair and Ian Gibbs will remain on the Board in order to approve and implement the Proposals. Following the implementation of the Proposals, Mr. Adair will resign as a director and Mr. Gibbs will remain on the Board, and will be joined by Mr. Peter Redmond.

Peter Redmond is an experienced corporate financier and has some 30 years experience in corporate finance and venture capital. He became director of corporate finance at Durlacher Limited in 2003, then joined Merchant House Group plc where he later became Chief Executive, prior to joining Rivington in 2010. He has been active in reconstructing a number of AIM companies which have subsequently acquired or established operating businesses, including natural resources companies such as Igas Energy plc, Weatherly International plc and CarbonDesk plc.

Tags: Leed Petroleum PLC