Last checked at 16 Nov 2012 07:00
AIM: SLME
16 November 2012
Silvermere Energy plc
("Silvermere" or the "Company")
Notice of General Meeting
Silvermere, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the US, announces that a notice has been sent to its shareholders to convene a General Meeting which is to be held at 11.00 a.m. on Monday 3 December 2012 at the offices of Merchant Securities Limited at 51-55 Gresham Street, London, EC2V 7EL to seek authority to allot shares and the disapplication of certain pre-emption rights.
Since the Company's last Annual General Meeting on 18 June 2012, the Company has raised funds through the issue of new Ordinary Shares. This has meant that the Company has very little remaining authority to raise additional funds through the issue of further new Ordinary Shares until the Company's next AGM. The funds raised to date have enabled the Company to bring the I-1 well on line and position the Company for first production and cash flow. The Company would like increased authority now to enable additional working capital to be raised if appropriate in relation to the funding of further development of the Mustang Island field and/or other development opportunities for the Company.
Andy Morrison, Chief Executive of Silvermere said, "The bringing on line of the I-1 well is an important milestone in the Company's development. Production from this well will deliver initial cash flow for the Company bringing it close to breakeven on a cash flow basis. We are committed to the project at Mustang Island and we continue to assess a number of development opportunities that could increase business scale and allow us to work alongside industry partners."
A copy of the shareholders' notice and details of General Meeting will also be available on the Company's website: www.silvermere-energy.com
--ENDS--
For further information please contact:
Silvermere Energy plc Andy Morrison, Chief Executive
|
+44 (0)7980 878 561 |
Merchant Securities Limited (Nominated Adviser and Broker) Lindsay Mair/Virginia Bull/Catherine Miles
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+ 44(0)20 7628 2200 |
Peterhouse Corporate Finance Limited Jon Levinson
| +44 (0)20 7469 0937 |
Bishopsgate Communications Nick Rome/Anna Michniewicz/Ivana Petkova | +44(0)20 7562 3350 |
About Silvermere Energy PLC
The Company acquired its interest in the Mustang Asset on 30 August 2011. This comprises a 33.33 per cent. working interest and 20.83 per cent. net entitlement interest in the Mustang Licence Area, an area within the southern half of the north west quarter and northern half of the south west quarter of the Block 818-L field as defined in State of Texas Oil and Gas Lease numbers 108873 and 108874. The Mustang Island 818-L field, located in Kleberg County waters of the Gulf of Mexico, is a field re-habilitation project targeting bypassed or only partially produced gas-condensate.
Early in 2011, the Hercules Offshore 205 jack-up rig was contracted to re-enter the I-1 Well on the Mustang Licence Area, which was considered to be the most likely of the historic well sites to provide 14 optimum re-entry conditions. The I-1Well re-entry and side-tracking operation was completed in March 2011 leaving it ready to complete in sand horizons I-1 to I-6. Production and flow testing was carried out during June 2011. The well re-entry programme was led by Dominion as the operator. Gas and oil produced from the I-1 Well is proposed to be connected to pipeline infrastructure and tied in via a subsea assembly, constructed for the purpose and then transported to the Six Pigs gas facility.
Silvermere's strategy is to acquire a portfolio of US oil and gas licence interests onshore and in shallow offshore waters, characterised by relatively low risk and low cost with the potential for near term production.
Silvermere is quoted on the AIM Market of the London Stock Exchange plc (AIM: SLME) with its offices in London.