Last checked at 14 Dec 2011 09:02
14 December 2011
Silvermere Energy plc
("Silvermere" or "the Company")
Warrant Exercise and Directors' Dealings
Silvermere, the independent oil and gas company focusing principally on exploration, appraisal and production opportunities in the US, is pleased to confirm the issue of new ordinary shares as set out below.
Warrant Exercise
The Company has received notices of exercise from T1ps Smaller Companies Growth Fund ("T1ps") of 1,000,000 2010 Warrants (as defined in the recent admission document) and from Germiston Investment Ltd of 800,000 2010 Warrants, and the Board has allotted these shares. The warrants exercised by T1ps were previously acquired by them at a price of 25p per warrant. The newly issued shares are subject to lock-in/orderly marketing agreements as indicated in the Company's recent admission document.
Following the above warrant exercises, the number of outstanding 2010 Warrants is 56,478.
Directors' Dealings
In accordance with the terms of his engagement, 14,635 new shares have been allotted to Stewart Dalby, a non-executive director of the Company, at a subscription price of 20.5p per share, this being the mid-market closing price on the specified date of 29 November 2011. Following the issue, Mr Dalby holds a total of 14,635 shares in the Company, representing approximately 0.07 per cent of the total issued capital as enlarged by the warrant exercises and issues detailed herein.
Additionally, Andy Morrison, chief executive officer of Silvermere, has agreed to reinvest £9,840 of salary due to him on the same terms as Mr Dalby. Accordingly, a further 48,000 shares in the Company have been allotted to Mr Morrison. These shares will be held by Mr Morrison in his SIPP.
As a result of this warrant exercise, Andy Morrison's total shareholding in the Company amounts to 211,560 ordinary shares, representing approximately 1.03 per cent of the Company's issued share capital as enlarged by the placing and warrant exercises detailed herein.
Application will be made for the new ordinary shares to be issued pursuant to the above arrangements to be admitted ton trading on AIM and dealings are expected to commence on 20th December 2011.
Total Shares in Issue
Following the above share issues, the total number of ordinary shares in issue will be 20,447,226. Shareholders may use this number when calculating their percentage holding in the Company.
Following the allotment of these shares T1ps Smaller Companies Growth Fund holds 2,432,429 ordinary shares being approximately 11.9 per cent of the Company's enlarged share capital.
-ENDS-
For further information please contact:
Silvermere Energy plc Andy Morrison, Chief Executive
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+44 (0)7980 878561
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Merchant Securities Limited (Nominated Adviser and Broker) Lindsay Mair/Virginia Bull
Rivington Street Corporate Finance Limited Jon Levinson/Dru Edmonstone
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+ 44(0)20 7628 2200
+44 (0)20 7562 3357
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Bishopgate Communications Nick Rome/Shabnam Bashir |
+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-1Well is proposed to be connected to pipeline infrastructure and tied in via a subsea tree, 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.