Drawdown on Equity Line

RNS Number : 0871F

Sound Oil PLC

18 April 2011

 



Sound Oil plc ("Sound Oil" or "the Company")

Drawdown on Equity Line

Sound Oil announces that it has drawn down on its Standby Equity Distribution Agreement ("SEDA") with YA Global Master SPV Ltd ("Yorkville") in the amount of GBP2.8 million. This draw down has been undertaken at a price of 5.153p per share and will result in the issue of 54,337,384 ordinary shares of 0.01p each in the Company ("the New Ordinary Shares") to Yorkville.

The proceeds of the draw down will be applied to the funding of Sound Oil's combined work programme and ongoing costs of the Company and its subsidiaries.

Application will be made for the New Ordinary Shares to be admitted to AIM and dealings are expected to commence on 21 April 2011. The New Ordinary Shares will rank pari passu with the Company's existing issued ordinary shares.

Gerry Orbell, Chairman commented:  "This issue was at a good price and the extra £2.8 million, net of all costs, will give us a buffer for anything not already budgeted in our forthcoming eight well programme (such as more drill stem tests if required) and will also allow us flexibility in following through on the new opportunities which we are turning up."

For the purposes of the Financial Services Authority's Disclosure and Transparency Rules, the Company notifies the market that as at the date of this announcement, the Company's issued share capital consists of 1,613,999,755 ordinary shares with a nominal value of 0.1 pence each ('Ordinary Shares'), with voting rights. The Company does not hold any Ordinary Shares in Treasury.

The above figure of 1,613,999,755 Ordinary Shares 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 in their interest in, the share capital of the Company under the FSA's Disclosure and Transparency Rules.

For further enquiries please contact:

Sound Oil plc                                                                                                                                                       07903 861 145

Gerry Orbell - Chairman             

Finncap                                                                                                                                                                020 7600 1658

Sarah Wharry - Corporate Finance

Tom Jenkins/Joanna Weaving - Corporate Broking

Buchanan Communications                                                                                                                            020 7466 5000

Tim Thompson

 

END

 

 

IOEGCGDSLDBBGBI