Expected Agreement & Fundrais

RNS Number : 3222V

Chalkwell Investments PLC

30 October 2010

 



30 October 2010

Chalkwell Investments plc.

("Chalkwell" or the "Company")

Expected Agreement & Fundraising

Chalkwell, the AIM-quoted investment company, with a focus on the resource sector, expects to announce on Monday that it has completed a placing of 2,000,000 new ordinary shares of £0.001 each ("New Ordinary Shares") at a price of 30p per share, (the "Placing") for a total value of £600,000. The proceeds will be used as to £100,000 for the general working capital needs of the Company and as to up to £500,000 as an unsecured loan made by Chalkwell to Core Oil & Gas, Inc. ("Core") ("Loan"). 

Core is a US-focused oil and gas company, which has acquired a 33.3% working interest and a 29.13% net revenue interest in respect of Mustang Island in Kleburg County, Texas (State of Texas Oil and Gas Lease numbers 108873 and 108877) ("Mustang Interest").

Mustang Island is a shallow inshore oil and gas asset, located in the Gulf of Mexico, with infrastructure in place and nearby oil and gas pipelines available.  Mustang Island is a proven behind-pipe asset, comprised of four shut-in wells previously drilled by Chevron Corporation. Core estimates that the Mustang Island asset contains total initial P90 reserves of up to 11.8 million barrels of oil equivalent ("boe") (Core's share of reserves).

The Company understands that Core intends to acquire, following completion of the Placing and granting of the Loan, participation interests in respect of several hydrocarbon assets in Michigan which Core estimates contain additional total initial P90/P50 reserves of up to 6.38 million boe (Core's share of reserves).

In addition, Core has a number of other oil and gas prospects in the United States of America under active consideration. Core's strategy is to generate short-term cash flow from smaller near-term prospects whilst it develops larger reserves, including Mustang Island.

The Company is evaluating opportunities and undertaking due diligence that may or may not result in further developing the commercial and corporate relationship between the Company and Core.

ENDS

For further information please contact:

Chalkwell Investments plc

Nigel Weller, Director                                                                                                 [phone]

Religare Capital Markets (Nomad)

Nick Harriss/Emily Staples                                                                                         [phone]

Religare Capital Markets (Broker)

Daniel Briggs                                                                                                                    [phone]

Bishopgate Communications

Michael Kinirons                                                                                                              [phone]

 

END

 

 

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