SCOTTSDALE, AZ--(Marketwired - Mar 15, 2017) - KEY CAPITAL CORPORATION (OTC PINK: KCPC) with regard to the Company's interest in GeoGlobal Resources, Inc. (GeoGlobal) advises:
The Company is engaging legal counsel to proceed legal claim to management and control of GeoGlobal.
GeoGlobal has interests in major Oil & Gas properties in India, and contingently a potential interest in a significant oilfield in Colombia. The Company's interest in GeoGlobal is contested by its former Chairman, as has been previously advised.
GeoGlobal has a 10% carried interest in the Krishna Godavari NELP-III block KG-OSN-2001/3 oil and gas field in which to date about $3.5 billion has been spent on exploration, discovery, and production infrastructure development field. An 80% interest has recently been agreed to be sold at a discounted price of total $1.195 billion, to Oil and Natural Gas Corporation Limited (ONGC). This would value the GeoGlobal interest at approximately $149.4 million.
In April 2014 the Company entered into a binding Agreement with GeoGlobal, at the urgent request of then GeoGlobal Chairman, Jean Paul Roy, as GeoGlobal at the time was: facing imminent bankruptcy; in dispute with each of its partners; delisted from the NYSE; de-registered in Delaware; delinquent in all its reporting and filing requirements; and had no employees, funds, or other support resources. The terms of the agreement with GeoGlobal were offered by GeoGlobal to other parties who had all rejected the offer (including Israeli-based Israel Land Development Company - Energy Ltd, (ILDE), GeoGlobal's major holder of Common Stock). On acceptance of the agreement by the Company it was subsequently ratified by the GeoGlobal Board.
Following Agreement with GeoGlobal, two Key Capital representatives and an independent director were appointed to the GeoGlobal Board. On subsequent GeoGlobal Board resolution, Convertible Preference shares providing voting control of GeoGlobal, and a future control shareholding on conversion were issued to Key Capital. Immediately from the April 2014 Agreement, the Company provided intensive and extensive support and involvement, including provision of accounting, analytical and legal personnel, and expertise. The Company further successfully resolved major GeoGlobal issues, partner related disputes, and especially resolution of a long-outstanding impasse with Indian partner Gujarat State Petroleum Corporation (GSPC) regarding withheld revenue and ongoing revenue sharing from producing oil and gas fields. On resolution of these matters, Jean Paul Roy traveled to India, and contrary to Board and partnering authorities, unlawfully assumed control of GeoGlobal's India subsidiaries. Without any Board or Shareholder approvals or authority, he then purported to terminate the Company's Agreements; ignore the issued Preference Shares and their rights; and dismiss the existing board and appoint a new one.
Subsequently, Jean Paul Roy discontinued the corporate re-instatement of GeoGlobal in Delaware, which the Company had commenced to proceed. He continues to operate the GeoGlobal subsidiaries in India largely, in the considered opinion of Key Capital, unlawfully and predominantly for self-enrichment, to the detriment of the Company's interests and other GeoGlobal shareholders. Jean Paul Roy is further responsible for the establishment in early 2015 of grossly misleading website content at www.geoglobal.com, including numerous false claims and statements, and advice that GeoGlobal is a US publicly traded oil and gas company whose stock is traded on the OTC Markets under symbol GGLR. The Company has repeatedly advised Jean Paul Roy and ILDE of this ongoing deliberate misrepresentation and ignorance of corporate responsibility and governance.
Oil and Natural Gas Corporation Limited (ONGC), in India on December 24, 2016, announced the acquisition of 80% of the GSPC offshore Krishna Godavari oil and gas project at a discounted price of total $1.195 billion. ONGC is India's largest oil and Gas Company having a market capitalization of over $36 billion and revenue last year of a reported $21.83 billion.
The Company formally advised ONGC of its interest in GeoGlobal Resources on January 3, 2017.
On February 23, 2017, in a Press Release, ONGC advised: "ONGC Board has approved execution of Farm-in / Farm-out agreement with M/s GSPC in respect of acquisition of 80% Participative Interest and Operatorship in the NELP-III block KG-OSN-2001/3. Following ONGC Board's decision in its 287th meeting held on 23.12.2016 to acquire 80% Participative Interest and Operatorship in the block, the two companies, after several rounds of discussions and legal due diligence, have agreed to the terms and conditions to be incorporated in the Farm-in / Farm-out agreement. The Farm-in / Farm-out agreement sets forth the modalities to be followed to effect the assignment of Participative Interest and change of Operatorship with the approval of the Government as per the existing Production Sharing Contract and Joint Operating Agreement of the block." See: www.ongcIndia.com under Press Releases Item 3.2.
The Company is currently in discussion regarding the appointment of legal counsel to seek lawful remedy, together with other options available to it and, also on behalf of GeoGlobal shareholders.
About Key Capital
Key Capital is an Investment Banking Group, with its major focus being on building a Mineral Bank that will accrue accretive streaming interests in diverse commodities. Through the provision of structured financing of mining and energy production projects, Key Capital retains life-of-mine interests in the production of mines containing gold, silver, base or other industrial metals, or in energy products.
For further information regarding Key Capital:
Disclaimer: Statements made in this press release that express the Company or management's intentions, plans, beliefs, expectations or predictions of future events, are forward-looking statements. The words "believe," "expect," "intend," "estimate," "anticipate," "will" and similar expressions are intended to further identify such forward-looking statements, although not all forward-looking statements contain these identifying words. Those statements are based on many assumptions and are subject to many known and unknown risks, uncertainties and other factors that could cause the Company's actual activities, results or performance to differ materially from those anticipated or projected in such forward-looking statements. The Company cannot guarantee future financial results, levels of activity, performance or achievements and investors should not place undue reliance on the Company's forward-looking statements.