Outcome of the Encha Group Litigation
EFORA ENERGY LIMITED
(Incorporated in the Republic of South Africa)
(Registration number 1993/000460/06)
JSE Share Code: EEL
(“Efora” or “the Company”)
OUTCOME OF THE ENCHA GROUP LITIGATION
Efora is pleased to provide an update on the appeal of the arbitration judgement awarded in May 2019 with respect to its claim against Encha Group Limited (“Encha”) wherein the Company’s claim of R115 million was dismissed and the Company was ordered to pay the cost of the arbitration. The Company had fully impaired this amount in its financial statements in the prior years.
The Company appealed the outcome of the arbitration, which appeal process has now been completed and the Appeal Tribunal ruled in favour of Efora and has ordered Encha to now pay the Company R75 million plus interest at the agreed rate calculated from 1 March 2016 up to the date of payment. The claim amount of R115 million had been calculated based on an interest accrual from 28 February 2013 to September 2016. Encha has also been ordered to pay all the costs of the arbitration. These amounts are now due and payable.
Efora’s Interim CEO Mr Matroos said:
“The conclusion of this matter brings to an end another long outstanding legacy issue that has plagued the organisation for many years. The outcome of the appeal also vindicates the Company’s efforts to progress this matter to recoup funds for the benefit of our shareholders.”
22 November 2019
For further information please contact:
Efora Energy Limited
+27 (0)10 591 2260
Efora Energy Limited is a South African based independent African oil and gas company, listed on the JSE. The Company has a diverse portfolio of assets spanning production in Egypt; exploration and appraisal in the Democratic Republic of Congo; a midstream project relating to crude trading in Nigeria and material downstream distribution operations in South Africa. Our focus as a Group is on delivering energy for the African continent by using Africa’s own resources to meet the significant growth in demand expected over the next decade.
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