Issue of Equity

RNS Number : 8183Z

Silvermere Energy PLC

22 March 2012

 



22 March 2012

Silvermere Energy plc

("Silvermere" or the "Company")

Issue of Equity

Silvermere, the independent oil and gas company focusing principally on appraisal and production opportunities in the US announces that it has allotted 56,478 new ordinary shares in respect of the exercise of the last remaining unexercised 2010 Warrants (as defined in its Admission Document dated 2 August 2011).

Following the warrant exercise the total number of Ordinary Shares in issue will be 20,778,524.   Shareholders may use this number when calculating their percentage holding in the Company.

Application is being made for the 56,478 Ordinary Shares to be admitted to trading on AIM and dealings are expected to commence on 27 March 2012.

Commenting on the development, Andy Morrison, Chief Executive of Silvermere said, "The exercise of the final tranche of 2010 Warrants provides a helpful simplification of the Company's capital structure as we organise ourselves for a business development phase"

Preparations for production from the I-1 Well at Mustang Island are continuing. The Operator, Dominion Production Company LLC has confirmed that it has agreed with its contractor, Laredo that mobilization to the area will commence during the first period of extended weather opportunity after 1 April 2012.

--ENDS--

For further information please contact:

Silvermere Energy plc Andy Morrison, Chief Executive	[phone]
Merchant Securities Limited (Nominated Adviser and Broker) Lindsay Mair/Virginia Bull	+ 44(0)20 7628 2200
Rivington Street Corporate Finance Limited Jon Levinson	[phone]
Bishopgate Communications Nick Rome/Shabnam Bashir	[phone]

About Silvermere Energy PLC

The Company acquired its interest in the Mustang Asset on 30 August 2011.  This comprises a 33.33 per cent. working interest and 20.83 per cent. net entitlement interest in the Mustang Licence Area, an area within the southern half of the north west quarter and northern half of the south west quarter of the Block 818-L field as defined in State of Texas Oil and Gas Lease numbers 108873 and 108874. The Mustang Island 818-L field, located in Kleberg County waters of the Gulf of Mexico, is a field re-habilitation project targeting bypassed or only partially produced gas-condensate.

Early in 2011 the Hercules Offshore 205 jack-up rig was contracted to re-enter the I-1 Well on the Mustang Licence Area which was considered to be the most likely of the historic well sites to provide 14 optimum re-entry conditions. The I-1Well re-entry and side-tracking operation was completed in March 2011 leaving it ready to complete in sand horizons I-1 to I-6. Production and flow testing was carried out during June 2011. The well re-entry programme was led by Dominion as the operator. Gas and oil produced from the I-1Well is proposed to be connected to pipeline infrastructure and tied in via a subsea assembly, constructed for the purpose and then transported to the Six Pigs gas facility.

Silvermere's strategy is to acquire a portfolio of US oil and gas licence interests onshore and in shallow offshore waters, characterised by relatively low risk and low cost with the potential for near term production.

Silvermere is quoted on the AIM Market of the London Stock Exchange plc (AIM: SLME) with its offices in London.

 

END

 

 

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