25 Jan 2011 07:00
ViaLogy PLC ("ViaLogy" or "the Company")
Placing to raise £1.25 million
London, January 25, 2011. ViaLogy (LSE:VIY) is pleased to announce that it has today raised £1.25 million through the placing of 41,666,664 new ordinary shares of 1p each ("Placing Shares") at a price of 3p per share with certain existing shareholders ("the Placing").
The net proceeds of the Placing will be used in the further expansion of ViaLogy's energy business which uses its proprietary QuantumRD™ technology to discover and characterise hydrocarbon reservoirs and generate drilling targets.
Application has been made for the 41,666,664 Placing Shares to be admitted to trading on AIM and dealings are expected to commence on 31 January 2011. Following the Placing, the total number of ordinary shares in issue and therefore the total number of voting rights is 733,941,998.
Terry Bond, chairman of ViaLogy commented: "This funding will help to provide a firm financial base during what promises to be a very important year for the company. At the beginning of 2010, and with our previous series of successful wells in Texas as a launching pad, the board took a deliberate decision to focus our attention on global E&P companies as the path to establish QuantumRD, a novel realisation of seismic interferometry, as a standard industry platform. This, we believe, is where the commercial future of our company lies.
"The new funds will permit some expansion of our capacity to meet anticipated contract demand for new offshore prospects in the near term. As previously announced, we have made significant progress in the past twelve months in gaining the acceptance of a new technology in the upstream E&P sector. We concluded a Master Services contract with a supermajor and are working on our first project for them; in addition, following successful completion of a technology demonstration project, we are in advanced talks with a Fortune Global 100 international E&P firm. Other talks are underway with a non-US national oil company. The discussions focus on large core projects, both onshore and offshore, which we expect will lead to commercial contracts. We have also received enquiries from some of the large international oilfield services firms, and we are in advanced discussions with one of them in relation to a possible strategic partnership."
Options Grant
Under the terms of his employment contract entered into on June 22nd, 2010, Dr. Sandeep Gulati, ViaLogy's founder and Chief Technology Officer, is entitled to additional options awards in order to retain his interest in the ordinary share capital of ViaLogy. The Company has therefore issued 3,967,360 options exercisable at 1p per share.
For further information please contact:
ViaLogy PLC |
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Terry Bond, Chairman - UK & Europe |
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Seymour Pierce Limited Nominated Advisor and Broker to ViaLogy |
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Mark Percy / Catherine Leftley (Corporate Finance) Katie Ratner/Jeremy Stephenson (Corporate Broking) |
| +44 (0) 207 107 8000 | ||
Except for statements of historical fact, the information presented herein constitutes forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the company to be materially different from any future results, performance or achievements expressed or implied.