Terraoil announces Approval of CHF 19.3 million KER and Key Upcoming Milestones
Terraoil Swiss AG, an E&P company with a strong focus on the Mediterranean, today announced that tax rulings have been received from the Swiss federal tax authorities (ESTV), for the approval of CHF 19.3 million as Kapitaleinlagereserve (KER) in order that these contributions can be recognized as qualifying capital contribution reserves in the sense of Swiss federal anticipatory (withholding) tax law. The final formal approval has been obtained by federal tax authorities after the approval of the 2019 financial statements by the annual general meeting of the company.
Key upcoming milestones
The company has updated its investor relations section on the corporate website to include its latest investor presentation. The presentation provides an overview of Terraoil's business opportunity, its operations, leadership team, and other information relevant to prospective investors. For a downloadable PDF of the investor presentation please visit our Presentations section
The company expects to achieve the following key milestones by H2/2022:
- Finalization of the Production Sharing Agreements for three new oil & gas fields for which the company has signed the heads of terms
- Take over operations of the new fields and rapidly increase production up to 1,100 bopd
- International Stock Exchange listing envisaged by Q4/2021, H2/2022
We are pleased that the Federal tax Authority has approved the KER which helps us to position the company for future tax-efficient distributions to its shareholders.
The approval, together with the existing KER, will position the company to make a future tax-free distribution to shareholders up to CHF 19.3 million provided certain conditions are met, including positive retained earnings, sufficient liquidity and current profitability. The distribution would be favorable to Swiss shareholders who would not be subject to income tax on this amount. The tax situation of individual shareholders may vary and should be considered by each shareholder if and when such distribution is declared by the Company.
This is the year Terraoil will evolve into a diversified E&P company with the anticipated takeover of the three additional onshore producing oil fields and the development of potentially interesting gas projects with our partners.
We have set important goals for the company which we believe are achievable and hence we continue to take the necessary steps to position the company for a stock exchange listing when the window for such an opportunity opens. The main purpose of the planned IPO is to achieve our mission to become the country's leading oil producer. The company's IPO preparedness is an important milestone for the company as we are aiming to receive regulatory approval in the shortest possible time.