Rift Helium Regulatory News (RIFT)

5 Jun 2008 15:50



Rift Oil plc

Replacement of

Private Placing to raise approximately £5.166 million

Thornaby Limited's shareholding, on the announcement issued at 7.00 am on 5 June under RNS number 0182W, was incorrectly stated as 78,615,825 shares when this should read 79,615,825 shares representing 10% of the Company's issued share capital. The announcement text is otherwise unchanged and is reproduced in full.

Rift Oil plc ("Rift"), the oil and gas exploration company with assets in Papua New Guinea ("PNG"), has today finalised a placing of new shares for cash to raise £5,165,650 through a placing (the "Placing") of 98,393,348 ordinary shares (the "Placing Shares") at a placing price of 5.25p  (the "Placing Price") per share. These shares were placed by the Company's broker, RBC Capital Markets, with institutional clients and high net worth individuals.

Together with the Company's existing cash balances of $11 million, the net proceeds of the Placing will be used to fund the consideration for the acquisition of Austral's (i) 35% interest in PPL 235, (ii) 50% interest in PPL 261 and (iii) 35% interest in the Coral Sea Rig, , as announced on 23 May, and to finance 100% of the expenditure of the Company's current work programme of drilling and testing the Puk Puk well, spudded in May, testing Douglas 1 and funding the acquisition of 70km of seismic on some of the Company's unexplored acreage.

Each of Thornaby Limited (a company the entire issued share capital of which is owned by the I.R. Gowrie-Smith Family Settlement, the beneficiaries of which include Ian Gowrie-Smith) and Ocarina Investments Limited (a company the entire issued share capital of which is owned by the DJ Lees Family Settlement, the beneficiaries of which include David Lees) are also participating in the Placing. They are each subscribing for 2,857,144 shares at the Placing Price. 

The shareholdings of both Thornaby and Ocarina, following the Placing will be as follows:

The Company has, under the terms of the placing agreement governing the Placing, granted to RBC, subject to completion of the Placing, warrants to subscribe for 4,348,239 new ordinary shares in the share capital of the Company, such Warrants being exercisable at the Placing Price at any time from the first anniversary of admission of the Placing Shares until the second anniversary of admission of the Placing Shares.

Application has been made for the Placing Shares to be admitted to trading on AIM and dealings are expected to commence on 10 June 2008. Following the Placing there will be 795,838,680 shares in issue.

The drilling programme at the Puk Puk site on PPL 235 has reached 900 metres on its way to the 2,000 metres target and is currently proceeding satisfactorily. 

The Company has been in discussions recently with a company regarding an LNG off-take agreement for the delivery of gas. These discussions are ongoing.

Ian Gowrie-Smith, Chairman, said

"We are delighted that we can now pursue and expand exploration of our Papua New Guinean gas assets. In particular, the funds raised will allow the Company to complete the acquisition of the interests previously held by Austral Pacific and allow the Company to embark on an expanded seismic programme. The rise in oil and gas prices over the last year has changed the commercial opportunities to exploit our 7,000 sq km petroleum licences in PNG's foreland region. Rift's first priority is to continue with its current programme aiming at supplying Alcan, pursuant to the MOU, over the next 20 years. Furthermore, Rift is actively examining other opportunities including the conversion of gas to LNG by vessels possibly in association with regional gas gathering"

Enquiries:

Rift Oil 020 7340 9970

Ian Gowrie-Smith / David Lees

Buchanan 020 7466 5000

Tim Anderson / Isabel Podda

RBC Capital Markets 020 7653 4804

Andrew Smith / Sarah Wharry