CIR.L Regulatory News (CIR)

3 Apr 2006 16:32

Capricorn Resources PLC03 April 2006 CAPRICORN RESOURCES PLC SUSPENSION OF TRADING The Directors of Capricorn Resources PLC ("Capricorn") note that trading in itsOrdinary Shares and Warrants on the AIM Market of the London Stock Exchange hasbeen suspended today under the rule relating to investing companies. TheDirectors further note that, unless Capricorn completes a reverse transaction inaccordance with the rules, its admission to AIM will be cancelled on 30September 2006. The Directors of Capricorn have reached agreement in principle for theacquisition of a company operating in the on-shore natural gas sector in theUnited Kingdom, and holding a petroleum licence which includes a small gas fieldin Derbyshire. The recent increase in gas prices mean that it can be economic toproduce gas from a small field and the intention is to bring this field intoproduction within six months of completion of the acquisition. The licence alsoincludes abandoned mine workings and it will be Capricorn's intention in thelonger term to explore for and produce coal bed methane, including gasassociated with abandoned mine workings, both on this licence and in other areasof Great Britain, and to develop gas storage facilities within such workings. The proposed acquisition will be conditional, inter alia, on completion of duediligence, including a valuation of the assets to be acquired, on the raising offurther cash intended to be provided by the exercise of part of Capricorn'soutsanding Warrants, and on confirmation of certain regulatory matters. Amongthe requirements is approval by Capricorn shareholders in general meeting as aspecial resolution. As one shareholder grouping controls more than 25% ofCapricorn's shares the approval of that group is essential for any resolution tobe passed and will be sought by the Directors prior to signing a bindingcontract. Should this agreement not be forthcoming the transaction will not be able toproceed, and for that reason the Directors will continue to examine otherpossible deals with a view to completing a transaction before 30 September 2006. Shareholders will be kept informed of developments. Contact: Brian Moritz (Chairman) 07976 994300 This information is provided by RNS The company news service from the London Stock Exchange