Placing to Raise £3.22 millio

RNS Number : 5720Z

Sound Oil PLC

17 January 2011

 



For immediate release

17 January 2011

THIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF IRELAND, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL. THIS ANNOUNCEMENT IS NOT AN OFFER OF SECURITIES IN THE UNITED STATES, AUSTRALIA, CANADA, JAPAN, THE REPUBLIC OF IRELAND, THE REPUBLIC OF SOUTH AFRICA OR ANY OTHER JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL.

Sound Oil PLC

("Sound Oil" or "the Company")

Placing to Raise £3.22 million

Sound Oil (AIM: SOU), the upstream oil and gas company with assets in Indonesia and Italy, today announces that it has raised £3.22 million before expenses in response to institutional investor demand through a placing (the "Placing") of 230,000,000 new ordinary shares of 0.1p each ("Ordinary Shares") at 1.4p per share (the "Placing Shares").

The Company announced a placing of Ordinary Shares on 15 December 2010 in conjunction with the acquisition of Consul Oil & Gas Limited.  The placing in December raised £3.7 million for the Company which, together with a £10 million Standby Equity Distribution Agreement ("SEDA") signed with YA Global Master SPV Ltd, an investment fund managed by Yorkville Advisors LLC, will be used to fund the enlarged group's work programme for an initial 12 months.  This additional Placing will provide the Company with further working capital headroom allowing a faster approach to the planned work programme on the Company's Italian assets.

Application has been made for the Placing Shares to be admitted to trading on AIM and dealings are expected to commence in the Placing Shares on 20 January 2011.

Commenting on the Placing, Gerald Orbell, Chief Executive of Sound Oil said:

"We are extremely pleased with the support the Company has received from its investors in recent weeks. This latest fundraising, which was heavily oversubscribed, will allow Sound to develop its recently acquired Italian assets at a faster rate than originally planned."

For further information please contact:

Sound Oil Gerald Orbell, Chief Executive Tony Heath, Finance Director	Tel: [phone] Tel: [phone]
Buchanan Communications Tim Thompson Ben Romney	Tel: [phone]
finnCap Clive Carver (Nominated Adviser) Joanna Weaving	Tel:  [phone]

SHARE CAPITAL AND PLACING STATISTICS

Number of Ordinary Shares in issue as at the date of this document                       1,285,306,331

Number of Placing Shares                                                                                  230,000,000

Number of Ordinary Shares in issue on Admission of the   Placing Shares              1,515,306,331

Net proceeds of the Placing due to the Company                                                  £3 million

Market capitalisation of the Company on Admission of the Placing Shares  approx. £21.18 million

at the Placing Price                     

 

END

 

 

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