Faroe Petroleum Rights Issue

RNS Number : 1037M

Parkmead Group (The) PLC

18 May 2010

 



THE PARKMEAD GROUP PLC

("Parkmead" or the "Group")

Faroe Petroleum Rights Issue

On 27 April 2010, Faroe Petroleum plc (FPM.L), announced a fully underwritten 0.6666 new shares at 100 pence for every 1 existing share rights issue to raise approximately GBP 69.8 million. At the close of business on 23 April 2010, being the record date for entitlements under the rights issue for qualifying shareholders, Parkmead was the holder of 2,918,724 ordinary shares in Faroe Petroleum plc ("Faroe") representing 2.79 per cent. of the issued share capital of Faroe.

The Group is pleased to announce that it has exercised 1,458,315 of its 1,945,620 total entitlements under the rights issue, representing approximately 75 per cent of its total entitlements and thereby has acquired an additional 1,458,315 ordinary shares in Faroe. The total consideration paid under the rights issue was £1.46 million which has been satisfied in cash from Parkmead's existing cash resources.  The nil paid rights attached to the remaining 487,305 entitlements were sold at an average price of 4.35 pence per share, resulting in cash proceeds to Parkmead of GBP 21,198.

Following the completion of the rights issue, Parkmead is and remains the holder of 4,377,039 ordinary shares in Faroe, representing 2.51 per cent. of the issued share capital of Faroe.

The Group believes that exercising its rights in the Faroe rights issue will allow it to participate in the exploration upside inherent in Faroe's exciting exploration portfolio.

For further information please contact:

The Parkmead Group plc
Niall Doran CEO	020 7494 5770
Donald MacKay, CFO	01224 853720
Charles Stanley Securities - Nominated Adviser to the Company	020 7149 6000
Ben Johnston / Luke Webster

 

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