21 Aug 2009 14:01
21 August 2009
Circle Oil Plc
("Circle" or the "Company")
Circle raises £16.5 million in a Secondary Placing
Circle Oil Plc (AIM: COP) has today conditionally placed 61,152,776 new ordinary shares of €0.01 each par value (the "Placing Shares") at a price of 27 pence per share raising £16.5 million for the Company from a number of institutional investors (the "Placing") through Fox-Davies Capital. It is expected that the Placing Shares will be admitted to trading on AIM on 27 August 2009.
The proceeds of the Placing will be used by the Company to assist in increasing gas production in Morocco through the provision of new infrastructure and additional drilling in 2009/2010, contribute to increasing production in Egypt through further appraisal and development drilling, complete more geology and geophysics over its Tunisian land permits and for general working capital purposes.
Mr David Hough, CEO of Circle, said:
"We are delighted to have completed this Placing and appreciate the support of all the investors who have contributed. This Placing was not just about raising money for future development but also about broadening Circle's institutional shareholder base, which the Board considers to be of importance to a Company with our growth potential.
"The Placing proceeds will be used to build on this year's highly successful exploration programme, converting more of the Company's confirmed discoveries into production revenue. The proceeds will also enable us to fund further exploration and appraisal/development programmes planned over the next 18 months.
"Circle is well positioned to build on the recent positive drill results and I look forward to providing shareholders with news of continued good progress."
For further information contact:
Circle Oil Plc (+44 20 7638 9571)
David Hough, CEO
Collins Stewart Europe Limited (+44 20 7523 8350)
Adrian Hadden / Adam Cowen
Fox-Davies Capital (+44 20 7936 5230)
Daniel Fox-Davies
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Notes to Editors:
Circle Oil plc
Circle Oil Plc (AIM: COP) is an international oil & gas exploration and production Company with an expanding portfolio of assets in Morocco, Tunisia, Oman, Egypt and Namibia with a combination of low-risk near-term production and significant exploration upside potential. The Company listed on AIM in October 2004.
Internationally, the Company has continued to expand its portfolio over the past 2 years and now has assets in the Rharb Basin, Morocco; the Ras Mamour Permit in southern Tunisia; the Mahdia Permit offshore Tunisia; the Grombalia Permit in northern Tunisia; the Zeit Bay area of Egypt and the Owambo Basin, Namibia. Circle also has the largest licence holding of any Company in Oman. In addition to its highly prospective Block 52 offshore, the Company also has an ongoing exploration program in Block 49 onshore.
The Company's strategy is to locate and secure additional licenses in prospective hydrocarbon provinces and through targeted investment programmes, monetise the value in those assets for the benefit of shareholders. This could be achieved through farm-outs to selected partners who would then invest in and continue the development of the asset into production, or Circle may itself opt to use its own expertise to appraise reserves and bring assets into production, generating sustained cash flow for further investment.
Further information on Circle is available on its website at www.circleoil.net