8 Sep 2017 07:00
Prospex Oil and Gas Plc / Index: AIM / Epic: PXOG / Sector: Oil and Gas
8 September 2017
Prospex Oil and Gas Plc
('Prospex' or the 'Company')
Placing to Raise £650,000
Prospex Oil and Gas Plc, the AIM quoted investment company, is pleased to announce that it has raised £650,000 gross via an oversubscribed placing of 185,714,300 ordinary shares of £0.001 each (the "New Ordinary Shares") at a price of 0.35 pence per New Ordinary Share (the "Placing Price") (the "Placing"). The Placing Price represents a zero per cent. discount to the mid-market closing price of the Company's Ordinary Shares on 7 September 2017.
The net proceeds of the Placing will help fund the Company's share of the 2017 work programme at the Suceava Concession ('Suceava') in North East Romania. This includes the drilling of the Bainet Prospect ('Bainet'), a shallow, gas target mapped on 3D seismic that has been assigned internal gross prospective resources of approximately 1.5bcf recoverable. Bainet is one of several low cost / low risk exploration and development opportunities that have been identified at Suceava. In addition, the funds will go towards the ongoing evaluation of a number of potential projects, in line with the Company's strategy to build a portfolio of investments in the European oil and gas sector, as well as general working capital purposes.
Prospex Non-executive Chairman, Bill Smith, said, "To have raised these funds at no discount to the market price is, in our view, a reflection of the quality of the Suceava asset; the defined low cost programme that is in place to rapidly generate production; and also management's strategy to use Suceava as a cash generative platform with which to build a significant presence in a proven hydrocarbon region. With drilling operations at Bainet due to commence shortly, this is an exciting period for Prospex and I look forward to providing further updates on our progress."
Admission to Trading on AIM
The New Ordinary Shares will rank pari passu with the existing Ordinary Shares. Application will be made for the New Ordinary Shares to be admitted to trading on AIM ("Admission") and Admission is expected to occur on 14 September 2017.
Following Admission, the Company will have in issue a total of 641,500,136 Ordinary Shares. The Company has no shares in treasury, therefore the figure of 641,500,136 should be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the share capital of the Company under the FCA's Disclosure Guidance and Transparency Rules.
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014 ("MAR").
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For further information visit www.prospexoilandgas.com or contact the following:
Edward Dawson | Prospex Oil and Gas Plc | Tel: +44 (0) 20 3586 1009 |
Rory MurphyRitchie BalmerJack Botros
| Strand Hanson Limited
| Tel: +44 (0) 20 7409 3494 |
Jon Belliss | Beaufort Securities Limited | Tel: +44 (0) 20 7382 8300 |
Lucy Williams Charles Goodfellow Eran Zucker
| Peterhouse Corporate Finance
| Tel: +44 (0) 20 7469 0932 |
Frank Buhagiar Charlotte Page
| St Brides Partners Ltd
| Tel: +44 (0) 20 7236 1177 |
Notes
Prospex Oil and Gas Plc is an AIM quoted investment company focussed on high impact onshore and shallow offshore European opportunities with short timelines to production. The Company's management acquires undervalued projects with multiple, tangible value trigger points that can be realised within 12 months of acquisition and then applying low cost re-evaluation techniques to identify and de-risk prospects.