THIS ANNOUNCEMENT (INCLUDING THE APPENDICES) AND THE INFORMATION CONTAINED WITHIN IT (TOGETHER, THIS "ANNOUNCEMENT") IS RESTRICTED AND IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN, INTO OR FROM
FURTHER, THIS ANNOUNCEMENT IS FOR INFORMATION PURPOSES ONLY AND DOES NOT CONSTITUTE AN OFFER IN ANY JURISDICTION.
Proposed Placing and Subscription to fund appraisal of incremental high-return Southern Hub
The Fundraise is being conducted on a non-pre-emptive basis. In addition to the Placing, the Company intends to enter into subscription agreements with certain of its directors and senior executives who have indicated that they intend to subscribe for 200,000 New Ordinary Shares (the "Subscription Shares") at the Issue Price (the "Subscription"). Together, the total number of New Ordinary Shares to be issued pursuant to the Fundraise will be less than 10% of the Company's existing issued share capital.
The Placing will be conducted in accordance with the terms and conditions set out in the Appendix to this announcement (which forms part of this announcement, such announcement and the Appendix together being this "Announcement") through an accelerated bookbuild process (the "Bookbuild") which will be launched immediately following release of this Announcement. The Placing is not being underwritten.
The net proceeds of the Fundraise will primarily be used by the Company to pursue a high-return incremental opportunity in addition to its existing development assets portfolio, by funding its 50% net share of the cost of drilling a dual-lateral appraisal well at the Kelham North and Kelham Central prospects in licence P2442 (Block 53/1b). Management estimates that Kelham North and Kelham Central contain gross mid-case resources of 36 Billion cubic feet equivalent ("Bcfe") and 42 Bcfe respectively, while the wells have geological chances of success ("GCoS") of 80% and 70% respectively. If successful, these assets would form the basis of a new Southern Hub that, with the Abbeydale discovery tied back subsea, has an estimated IRR of 47% at the Company's base planning case gas price of 45p/therm, directly benefitting from the existing Saturn Banks infrastructure. In the Company's view, successful appraisal would also significantly de-risk the other discoveries and prospects in the P2442 licence, enhancing the commercial potential of the area.
By conducting the Fundraise now, the Company will be able to elect to continue into the next phase of the licence and also exercise an extension option embedded in its
Assuming the Placing is subscribed in full, the Fundraise proceeds are intended to be used as follows:
Kelham North & Central appraisal well (50% share) | |
Additional drilling contingency | |
Accelerated technical evaluation of licence P2589 | |
Transaction fees and associated costs | |
Total |
The Fundraise is being conducted out of the authorities to issue and allot Ordinary Shares in the capital of the Company granted to the Directors by shareholders at the Company's annual general meeting on
The Issue Price represents a discount of approximately 8.3% to the closing mid-market price of an Ordinary Share of
Further details about the background to and reasons for the Fundraise are set out below.
Further details of the Terms and Conditions of the Placing are set out in the appendix to this Announcement. This announcement should be read in its entirety. In particular, you should read and understand the information provided in the "Important Notice" section and the detailed terms and conditions of the Placing described in the Appendix 1.
Enquiries:
+44 (0) 20 7036 1400 | |
finnCap Ltd | +44 (0) 20 7220 0500 |
+44 (0) 20 7418 8900 | |
+44 (0) 20 7390 0230 |
Please refer to the PDF attachment to view the full announcement.
This information is provided by RNS, the news service of the
https://news.cision.com/iog-plc/r/proposed-placing-and-subscription,c3420067
https://mb.cision.com/Main/19051/3420067/1472007.pdf
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