Firm converts N2.58b debts to shares in favour of CEO

Arising from its Annual General Meeting (AGM) yesterday, Geo-Fluids Plc announced the resolution that it has converted N2.58billion debts/load of the company into shares in favour of the Chairman and Chief Executive Officer, Jacob Esan.

The strategy was one of its revival measures for the firm that had been at its downtime over the past 13 years.

This was contained in the 2013-2024 Audited Statement of Affairs of the company that was issued in Abuja during the meeting.

The statement said, “Conversion of Debts/Loans into Shares of the Company (e) “That all outstanding sums in consideration of the Directors under the Directors’ Current Account in the sum of N2,586,019,000 (Two Billion, Five Hundred and Eighty-Six Million and Nineteen Thousand Naira) and ultimately to the benefit of Jacob Babadiya Oyebola Esan as contained in the Company’s accounts for the year ended December 31 2024 be converted into fully paid up ordinary shares in the capital of the Company, subject to obtaining relevant regulatory approvals.”

The financial of Geofluids over the past 13 years shows a shift to a stable cashflow profile from a prior stream of operating losses.

The positive change is underlined by some investment and financing activities that had significant impact on liquidity.

 Operating cash flows were volatile but gradually improved, moving from negative figures in the early years to steady positive inflows from 2018 onwards, and peaking at N35.51million in 2022 and remaining robust at N34.34 million in 2024.

This indicates better earnings quality and improved working capital management, as accounted for by the new operational structure of the organisation.

Though there have been spot cash inflows of N3.81billibn inflow in 2013 and N1.13bn in 2024, the end of period cash levels remained modest, fluctuating between N1.34million and N7.96million, ending FY 2024 at N7.27million.

Geofluids Plc, one of the players in the nation’s oil and gas industry is implementing a rebound strategy aimed at significantly turning around the fortunes of the organisation within the nearest future.

The broad strategic policy covers board overhaul, deepening and expansion of business lines, and refreshed operational systems.

Speaking at the AGM, Esan, stated that the organisation is implementing a bold and ambitious turn around strategy that will drive up value and place the company at the top of its industry of operation.

Esan, a corporate finance expert initiated the strategic plans and have been overseeing its successful implementation to date.

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 According to him, “Our strong project management pedigree and financial restructuring reputation gave us an early start in securing premium patrons and running an operation that could compete with some of the finest globally”.

One of the bids to re-energise the company for greater value creation, was the shareholders approval the appointment of new board of directors to provide strategic leadership that will deliver value to all stakeholders.

The reconstituted board is made up of professionals with longstanding experiences in various fields.

A review of the board shows regional spread, diverse expertise, and relevant experience.  The new board brings needed experience across energy, finance, law, governance, and strategic investments. It includes the following members: HRH Jacob Esan.

 Kabiyesi Jacob Esan is a capital markets professional, investment banker, corporate turnaround specialist, and boardroom leader with over two decades of multi-jurisdictional experience spanning Nigeria and the United Kingdom. He currently serves as the Chairman and Chief Executive Officer (CEO) of Geo-Fluids Plc, where he was appointed to lead the Company through a complex turnaround following severe financial distress and receivership.

 Dr. Abu Mohammed Sani is the President and CEO of PAK Engineering Corporation, Houston, USA, providing oil and gas engineering, project management, and professional training services. With over 30 years of global industry experience, he has held senior roles with Saudi Aramco. BHP Billiton, Marathon Oil. And Schlumberger. He holds engineering degrees from the Ahmadu Bello University (ABU) Zaria, Nigeria, KFUPM, the University of Oklahoma, and the University of Houston, Texas, USA.

Abubakar Bawa Bwari is an Ahmadu Bello University (ABU) Zaria, graduate of Geography with a master’s degree in urban and Regional Planning. He is a seasoned planner, entrepreneur, and politician. A three-term House of Representatives Member and long-serving Chief Whip. He later served as Minister of State for Mines and Steel. He holds national and international honours and is a Fellow of multiple professional bodies. His honours include the Officer of the Order of Leopold (Belgium). An Honourary Doctorate (USA), and the traditional title of Marafan Zazzau Suleja.

Tobechi C.  Egboh is a seasoned legal and corporate governance expert with over 35 years of experience across banking, oil and gas, real estate, and international advisory services. He is the Managing Partner of The Crest Partnership.  A Fellow of the Institute of Chartered Secretaries and Administrators of Nigeria (ICSAN), and a member of the Nigerian and Washington State Bars. He is known for strong governance, compliance, and strategic legal leadership.

Olumide Aju, is a Senior Advocate of Nigeria (SAN), he is dual-qualified as a lawyer admitted to both the Nigerian bar and that of England and Wales. He has over 29 years of trial and appellate experience across all superior courts. A Fellow of the Chartered Institute of Arbitrators (UK), he is a leading authority in commercial litigation and arbitration, as ranked by IFLR and Martindale-Hubbell.

Suleiman Hassan is a seasoned surveyor and public servant from Bauchi State. He holds an HND and Professional Diplomas in Land Surveying and other specialities like Environmental Impact Assessment (EIA). Suleiman has over four decades of experience in surveying, governance, and project management. He has served as Minister of State for Power, Works, and Housing. Minister of Environment, SURCON Registrar, and Principal Partner at Sulieman Hassan & Associates. He holds the traditional title, Waziri Jara of Gombe.

It is expected that this new board will provide Geo-Fluids with the sociopolitical and economic network, expertise, and governance support needed to drive the company’s subsequent evolution into one of Nigeria’s principal hydrocarbon businesses