TIDMNGP

RNS Number : 8012L

Niche Group (The) PLC

05 August 2011

5 August 2011

The Niche Group plc

("Niche" or "the Company")

Ratification of Investing Policy

Notice of GM

In line with best practice, and in accordance with Rule 8 of the AIM Rules, the Directors are proposing to ratify and approve a change of the Company's investing policy. The new investing policy is in line with the Company's existing policy of investing in pre-IPO companies in the natural resources sector but provides more detail so that it is clear, specific and definitive.

A GM will be held at the offices of Daniel Stewart, Becket House, 36 Old Jewry, London EC2R 8DD at 11am on 25 August 2011. The Notice of GM is set out in a Circular sent to Shareholders yesterday and is available on the Company's website at www.nichegroupplc.co.uk .

Investing Policy

The Company's Investing Policy is to acquire interests in early stage oil and gas businesses and related service companies and assets based in Europe, the Middle East and Central Asia.

The proposed investments to be made by the Company may be either quoted or unquoted; made by direct acquisition or through farm-ins; may be in companies, partnerships, joint ventures; or direct interests in oil and gas projects. It is not intended to invest or trade in physical commodities except where such physical commodities form part of a producing asset. The Company's equity interest in a proposed investment may range from a minority position to 100 per cent. ownership.

A particular consideration will be to identify investments which are, in the opinion of the Directors, under-performing, undeveloped and/or undervalued, and where the Directors believe that their expertise and experience, in conjunction with that of the investee company management, can be deployed to facilitate growth or unlock inherent value. The Directors will conduct initial due diligence appraisals of potential projects and, where they believe further investigation is warranted, intend to appoint appropriately qualified persons to assist. Investments in early stage and exploration assets are expected to be mainly in the form of equity and related instruments, with debt potentially being raised later to fund the development of such assets. Where the Company builds a portfolio of related assets it is possible that there may be cross holdings between such assets.

It is likely that a substantial portion of the Company's financial resources will be invested in a small number of propositions or in just one investment which, depending on the circumstances, may be deemed to be a reverse takeover under the AIM Rules. Any transaction constituting a reverse takeover under the AIM Rules will also require Shareholder approval. The Directors have not, however, excluded the possibility of building a broad portfolio of assets.

The Company intends to be an involved and active investor particularly with respect to funding and corporate governance but also in closely monitoring the progress of business activities. Accordingly, where necessary, the Company may seek participation in the management or board of directors of an entity in which the Company invests with a view to improving the performance and use of its assets with the aim of achieving an upward re-rating of the value of those assets.

Given the time frame the Directors believe is required to fully maximise the value of an exploration project or early stage development assets, it is expected that the investment will be held for the medium to long term, although short term disposal of assets cannot be ruled out in exceptional circumstances.

The Company intends to deliver shareholder returns principally through capital growth rather than capital distribution via dividends, although it may become appropriate to distribute funds to Shareholders once the investment portfolio matures and production revenues are established. In the first few years the Company will seek to ensure that its investments move the value chain from exploration to development and production and to turn around underperforming, undeveloped and/or undervalued assets. If successful, the increase in value should be reflected by an increase in the Company's share price.

Given the nature of the Company's Investing Policy, the Company does not intend to make regular periodic disclosures or calculations of net asset value.

The Directors have many years experience in investing in early stage businesses between them. When suitable opportunities have been identified, the Directors may appoint qualified consultants to provide advice to the Directors or use their own expertise to carry out feasibility studies on the potential investments.

Current investments

As previously announced, Niche currently holds loan notes convertible into a 35.7% shareholding in Oman Resources Limited ("Oman Resources"). Oman Resources is focused on gas exploration and development activities in onshore Turkey. Oman Resources has a 50% interest in four licences in Turkey in partnership with Arar Petrol ve Gaz AUPAS (the "Operator"), in which Niche is also a 5% shareholder.

Enquiries:

The Niche Group plc

Nigel Little

Tel. +44 (0) 7900 888 810

M: Communications

Patrick d'Ancona or Ben Simons

Tel. +44 (0)20 7920 2340

Daniel Stewart & Co. Plc - Nominated Advisor and Joint Broker

Oliver Rigby

Tel. +44 (0)20 7776 6550

Canaccord Genuity - Joint Broker

Charles Berkeley / Henry Fitzgerald-O'Connor

Tel: +44 (0) 20 7050 6500

The Circular may be viewed in its entirety on, or downloaded from, the Company's website www.nichegroupplc.co.uk.

Definitions

 
 "AIM Rules"                 the AIM Rules for Companies, 
                              as published by the London 
                              Stock Exchange from time to 
                              time; 
 "Circular"                  the Circular sent to Shareholders 
                              on 4 August 2011, setting out 
                              the Company's investing policy; 
 "Directors" or "Board"      the Directors of the Company, 
                              being Nigel Little, Donal Boylan 
                              and Rakesh Patel; 
 "GM" or "General Meeting"   the general meeting of the 
                              Company, to be held at the 
                              offices of Daniel Stewart, 
                              Becket House, 36 Old Jewry, 
                              London EC2R 8DD at 11am on 
                              25 August; 
 "Investing Policy"          the Company's investing policy; 
 "Niche" or "Company"        The Niche Group Plc; 
 "Notice of GM"              the notice of GM sent to shareholders 
                              with the Circular; 
 "Ordinary Shares"           the ordinary shares in the 
                              Company of 1p each; 
 "Shareholders"              holders of Ordinary Shares.

This information is provided by RNS

The company news service from the London Stock Exchange

END

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