<article>Singapore-listed <a style="color: #333399;" href="http://www.loyzenergy.com/" target="_blank">Loyz Energy Limited</a> has terminated its five-year lease with Fram Exploration ASA (Fram), the company announced.</article>

Singapore-listed <a style="color: #333399;" href="http://www.loyzenergy.com/" target="_blank">Loyz Energy Limited</a> has terminated its five-year lease with Fram Exploration ASA (Fram), the company announced.
It will pay a termination fee of $13.8 million to Fram, of which $2.5 million will be in cash and the rest will be in the form of 136.5 million of new Loyz Energy shares, to be issued at S$0.11 each.
Fram, in turn, has committed to a nine-month lockup period for these new shares, the company said in a regulatory filing.
Loyz had a five-year agreement with Fram for leasing of two drilling rigs. The rigs will now be sold for $16 million to Loyz&#8217;s controlling shareholder Jit Sun Investments.
Jit Sun is owned by Lionel Lee, the chief executive of <a style="color: #333399;" href="http://www.ezraholdings.com/" target="_blank">Ezra Holdings</a>, who is also the brother of Adrian Lee, Loyz&#8217;s managing director.
Adrian Lee, Loyz’s managing director said, “The back-to-back transactions in relation to the rigs are beneficial to the group, as it allows us to reduce our gearing and finance costs significantly, and continue to focus on our core assets. With our Thai asset delivering sterling results coupled with a stronger balance sheet after the transactions, we are well positioned to accelerate growth plans as oil prices stabilise and rebound.”
The transactions are to be approved by shareholders and expected to complete by June.
Post the completion of the deal, Loyz said it was poised to deliver an EBITDAX of approximately $12M for the current financial year ending 30 June 2015.
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Loyz Energy Limited has terminated its five-year lease with Fram Exploration ASA (Fram), the company announced

Loyz Energy sells rigs to major shareholder, axes lease with Fram

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Loyz Energy sells rigs to major shareholder, axes lease with Fram

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