Issue of Equity

RNS Number : 3305Q

Silvermere Energy PLC

18 October 2011

 



18 October 2011

Silvermere Energy plc

("Silvermere" or "the Company")

Issue of Equity

Silvermere Energy plc ("Silvermere" or "the Company)announces that it has allotted 202,573 new ordinary shares of 0.1p each to Channel Equity Partners (BVI) Ltd. following receipt of a Notice of Conversion from them in respect of loans to the value of £40,514.50 (representing a conversion price of 20p). Application will be made for the shares to be admitted to trading on AIM and dealings are expected to commence at 8.00 a.m. on 24 October 2011.

Following the above transaction, the total number of ordinary shares in issue will be 17,603,441. Shareholders may use this number when calculating their percentage holding in the Company.

-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 Rivington Street Corporate Finance Limited Jon Levinson/Dru Edmonstone	+ 44(0)20 7628 2200  [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 tree, 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.

 

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