Subscription to raise ?1m and discussions update

RNS Number : 3378H

Chalkwell Investments PLC

26 May 2011

 





26 May 2011

Chalkwell Investments plc

("Chalkwell" or the "Company")

Subscription to raise £1m and update on discussions with Core Oil & Gas Inc. ("Core")

Chalkwell is pleased to announce that it has today raised £1m before expenses through the issue of 2,857,143 new ordinary shares of 0.1p each in the Company at a price of 35p per share ("Subscription").  In addition the Company has issued the same number of warrants to subscribing shareholders on the basis of one warrant per ordinary share.  The warrants are exercisable at 45p per share for a period of one year from the date of issue. Following the Subscription, the Company has 7,532,223 ordinary shares in issue. 

Also following the Subscription, funds under the discretionary management of T1ps Investment Management ("T1ps"), hold 1,285,476 Ordinary Shares (being 17.06 per cent. of the issued share capital of Chalkwell). 

As previously announced, Chalkwell has an option agreement with Core, the key terms of which were summarised in Chalkwell's announcement of 16 May 2011. Pursuant to the option agreement, Core has granted an option to Chalkwell to acquire its interest (33.3% working interest and a 25.0% net revenue interest in respect) in Block 818L, Mustang Island, in Kleburg County, Texas ("the Mustang Island assets").  The Mustang Island assets are shallow inshore oil and gas assets, located in the Gulf of Mexico, with infrastructure in place and nearby oil and gas pipelines available.  

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Chalkwell has made secured advances to Core of £1,228,000 to enable Core to pay for drilling commitments in connection with the Mustang Island assets.  The proceeds of the Subscription will be used to advance a further £260,000 to Core, which Core will use to pay its share of the costs of further drilling on the Mustang Island assets. The proceeds will also be utilised to provide working capital for Chalkwell itself - including the payment of professional fees associated with seeking readmission of its ordinary shares to trading on AIM.

In this regard, Chalkwell is working with its professional advisers on the necessary documentation to allow it to complete the acquisition of Core and seek readmission of its ordinary shares to trading on AIM which is expected to be combined with a fund raising to provide working capital for the enlarged group.

A further announcement will be made in due course.

---ENDS---

For further information please contact:

Chalkwell Investments plc Bruce Evers, Executive Chairman	[phone]
Merchant Securities Limited (Nominated Adviser and Broker) Lindsay Mair/Virginia Bull	+ 44(0)20 7628 2200
Bishopgate Communications Nick Rome/Michael Kinirons	[phone]

 

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