9 Nov 2011 07:00
09 November 2011
Polo Resources Limited("Polo" or "the Company")
Polo increases interest in signet petroleum LTD
The Company is pleased to announce that it has, on 8 November 2011,subscribed for a further 1,428,571 new shares ("New Shares") in Signet Petroleum Ltd ("Signet") for total consideration of US$5 million, by exercising part of the option (the "Exercise") granted to the Company by Signet on 22 August 2011 (the "Call Option"). The proceeds of the Exercise will allow Signet to meet its short term working capital requirements and seek additional oil and gas assets in line with its business plan.
Following the issue of the New Shares Signet will have 31,423,808 issued ordinary shares ("Signet Shares"), of which Polo is interested in 3,523,808 Signet Shares representing 11.2 per cent. of Signet's issued shares, and 9.0 per cent. of Signet's issued shares on a fully diluted basis.
In consideration of the Exercise, Signet has agreed to an extension of the Call Option period with respect to the balance of the Signet shares under the Call Option, from 20 November 2011 to 31 January 2012 (the "Extension Date"). As such, the Company will still hold a call option to subscribe for a further minimum of 2,857,143 Signet shares (for total consideration of US$10 million) and, subject to the written consent of Signet, a maximum of 4,285,714 Signet shares (for total consideration of US$15 million) before the Extension Date.
Concurrent with the Exercise the Company received the following operational update from Signet:
Tanzania - North Mnazi Bay License
Signet's 80 per cent. owned subsidiary Hydrotanz Ltd, recently purchased seismic line TZ1-2000 of East African Span from GX Technology Corporation, a company based in Houston. This line transects the Mnazi Bay North Block. The line has been interpreted and integrated with historical data and new 2D seismic data.
Signet contracted 2D vessel M/V Northern Explorer from Norwegian group Sea Bird Exploration and acquired 366 - line kilometers of 2D data during August 2011.
The new 2D seismic data has been processed and initial interpretation has been completed. The seismic shows an extension of the BG/Ophir Chaza-1 gas discovery into the North Mnazi Bay License. The seismic has also identified another potential gas field to the west. Signet believes the block has significant gas reserves based on the new seismic data that has been acquired and the proximity of the Chaza-1 discovery.
Namibia - Block 2914B
Signet has recently acquired all available historical seismic data in relation to the block and has commenced interpretation. Signet management believe the initial results are very encouraging. The company is also planning to acquire new seismic in early 2012 to help further identify the significant potential on the 12,000 square kilometers license.
Burundi
Signet recently acquired all available historical technical data in relation to the block and evaluation of this information is advancing. Signet is also seeking to finalise arrangements for a seismic vessel, which is currently located in Burundi (undergoing upgrades) to make further seismic tests in the second quarter of 2012.
Benin
Signet recently acquired all available historical seismic data in relation to the block and has commenced interpretation. Signet management believe the initial results are very encouraging. Signet is planning to acquire new seismic in early 2012 to help further identify the significant potential on the license.
Background information on Signet Petroleum Ltd
Signet was incorporated and registered as a private limited company in the British Virgin Islands on 18 June 2010. Since its incorporation Signet has acquired interests in exploration rights for hydrocarbons in four countries in Africa, namely, Tanzania, Burundi, Benin and Namibia. Further information on Signet is contained in the Circular sent to shareholders dated 15 September 2011.
By a resolution of shareholders at a general meeting of the Company on 6 October 2011, the Company's shareholders approved the exercise of the Call Option, such exercise to be made at the Directors' discretion.
For further information, please contact:
Polo Resources Limited Ian Burns, Finance Director | + 2782 404 36 37 |
Evolution Securities Matthew Tyler, Jeremy Ellis, Romil Patel | +44 (0) 20 7071 4300 |
Liberum Capital Chris Bowman, Tim Graham | +44 (0) 20 3100 2228 |
Blythe Weigh Communications Tim Blythe Ana Ribeiro Matthew Neal | +44 (0) 207 138 3204
|
Toronto Borden Ladner Gervais LLP Jeffery Barnes, Terence Lui
| +1 416 367 6229 |
About the Company
Polo Resources is a natural resources investment company focused on investing in undervalued companies and projects with strong fundamentals and attractive growth prospects. For complete details on Polo Resources: www.poloresources.com.
CAUTIONARY STATEMENT
The AIM Market of London Stock Exchange plc does not accept responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein. All statements, other than statements of historical fact, in this news release are forward-looking statements that involve various risks and uncertainties, including, without limitation, statements regarding potential values, the future plans and objectives of Polo Resources Limited. There can be no assurance that such statements will prove to be accurate, achievable or recognizable in the near term.
Actual results and future events could differ materially from those anticipated in such statements. These and all subsequent written and oral forward-looking statements are based on the estimates and opinions of management on the dates they are made and are expressly qualified in their entirety by this notice. Polo Resources Limited assumes no obligation to update forward-looking statements should circumstances or management's estimates or opinions change.