26 May 2016 07:00
Regency Mines PLC
("Regency" or the "Company")
Investment in Westport Energy PLC
26 May 2016
Regency Mines, Plc, the natural resource exploration and investment company with interests in oil and base metals announces an investment in Westport Energy PLC ("Westport") a company recently formed to acquire natural gas operations in the United States.
Summary:
o Westport targeting the acquisition of onshore U.S. gas assets through a foreclosure process
o Regency to initially subscribe for 21,875 shares of £1.00 each of Westport at a price of £8.00 per share for total consideration of £175,000 in a pre-IPO funding; Westport shares subsequently to be divided into 100 ordinary shares of £0.01 each, the initial subscription to be covered from the Company's existing cash resources
o Westport to seek a listing on a London market and Regency commits to subscribe for a further £350,000 at a price of £0.10 a share ("IPO Subscription") upon admission of IPO shares
o Regency to appoint a director to the Westport board at the time of the IPO
o Regency to receive additional Westport shares at IPO in payment of a 7% fee ("Fee") to be taken in shares in Westport in consideration of its entering into a one-year lock in on IPO Subscription and Fee shares
Andrew Bell, Regency's Chairman comments: "With US gas rig utilization counts at record lows and current estimates showing US gas supplies going into deficit by the end of 2016, now is the time to take a meaningful position in the U.S. gas market. Westport is well positioned to take advantage of these market conditions and the gradual switch to gas as the preferred fossil fuel, as it completes a pre-IPO funding round prior to targeting gas assets as they come out of a foreclosure process.
This effort along with our existing stake in the exciting Horse Hill oil project and our previously announced intention to purse an oil well and associated earn-in agreement in bankruptcy in the Central United States, demonstrates our commitment to identifying and evaluating distressed assets and executing our plan to become a premier natural resource recovery play on AIM. We look forward to providing more announcements as the next phases of this transaction unfold."
For further information, please contact:
Andrew Bell 0207 747 9960 Chairman Regency Mines Plc
Scott Kaintz 0207 747 9960 Executive Director Regency Mines Plc
Roland Cornish/Rosalind Hill Abrahams 0207 628 3396 NOMAD Beaumont Cornish Limited
Jason Robertson 0129 351 7744 Broker Dowgate Capital Stockbrokers Ltd.