Placing

RNS Number : 3395Z

Prospex Oil and Gas PLC

26 May 2016

 

Prospex Oil and Gas plc

("Prospex" or the "Company")

Placing

The Company is pleased to announce that it has successfully completed, subject only to admission, a placing to raise approximately £1.64 million from the issue of 164,600,000  new ordinary shares of 1p each ("New Ordinary Shares") at a price of 1p per share (the "Placing"), through WH Ireland Limited, Beaufort Securities Limited and Peterhouse Corporate Finance Limited. Application has been made for the New Ordinary Shares to be admitted to trading on AIM and dealings are expected to commence on 10 June 2016.

The funds raised from the Placing will be used to: :

·      Support the 2016 activities of Hutton Poland Limited (as set out below);

·      Repay the loan from Hutton Energy Limited (as announced on 8 April 2016); and

·      For general working capital purposes.

Hutton Poland Limited ("Hutton Poland")

Part of the Placing monies will be utilised by Prospex to fund its proportional (49%) share of the 2016 provisional exploration budget of Hutton Poland. Prospex has been advised by the directors of Hutton Poland that with funding available from its shareholders they will move to drill a well on the Boleslaw Prospect. The well is targeting Gross Best Estimate Technical Un-risked Prospective Resources of 87.1 Bscf as set out in the Competent Persons Report commissioned by Prospex, the details of which were announced earlier today. .

Prospex has also been advised by the directors of Hutton Poland that they intend to target a well spud date in the fourth quarter of 2016, although timing is subject to a number of factors including environmental permitting and confirmation of a suitable rig and there can be no guarantee at this stage that this will occur.

Further announcements will be made in due course.

Bill Smith, Prospex non-executive Chairman, commented:

"We thank new and existing shareholders for their support in the Placing and look forward to the well being drilled. We believe the investment in Hutton Poland has superb potential; a successful well would release great value as highlighted in the AGR TRACS competent person's report released earlier today." 

Following the issue of the New Ordinary Shares, the total number of shares in issue is 205,331,291 New Ordinary Shares. There are no shares held in treasury. Therefore, the total number of voting rights in the Company is 205,331,291. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest under the Disclosure and Transparency Rules

Prospex Oil and Gas plc
Edward Dawson, Managing Director	0207 887 1461
WH Ireland Limited (Nominated Adviser and Broker)
Katy Mitchell/Nick Prowting Jay Ashfield	0113 394 6600 0207 220 1658
Peterhouse Corporate Finance Limited (Joint Broker)
Lucy Williams / Charles Goodfellow / Eran Zucker	0207 469 0932
Beaufort Securities Limited (Joint Broker) Jon Belliss	0207 382 8300

 

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