Extension to SEPCO EPC Framework Agreement

Released : 17 March 2015

RNS Number :

Oracle Coalfields PLC

17 March 2015 

17 March 2015

Oracle Coalfields PLC

("Oracle" or "the Company")

EXTENSION TO SEPCO EPC FRAMEWORK AGREEMENT

Oracle Coalfields PLC (AIM:ORCP), the UK energy developer of a combined lignite mineral resource and mine mouth power plant located in the Thar desert, in the south-east of Sindh Province, Pakistan, is pleased to announce that it has signed an extension to its Engineering, Procurement and Construction ("EPC") Framework Agreement with SEPCO Electric Power Construction Corporation ("SEPCO"). 

The original EPC Framework Agreement (the "Agreement") was signed with SEPCO on 25 September 2014.  The Agreement was due to expire on 23 March 2015 and the parties have now agreed to extend the Agreement to 31 December 2015 on otherwise unchanged terms, including exclusivity of the discussions. 

In line with the terms of the Agreement, the parties are presently negotiating EPC term sheets for the mine and power plant, in preparation for full EPC contracts. Discussions are now underway with China Export & Credit Insurance Corporation ("Sinosure"), on the financing proposals under which Sinosure will potentially securitise up to 85 per cent. of the cost of the two EPC contracts.

Shahrukh Khan, CEO of Oracle, said:

"Following the restoration of the mining lease, SEPCO and ourselves are keen to progress the project in an expeditious manner.  We shall be updating the market as the project continues to move forward."

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