The Company has an option to acquire a 33% working interest and a 20.83% net entitlement interest (following the payment of certain overriding royalties) in the lease numbers 108873 and 108874 of the Mustang Island Block 818-L field, located in the Kleberg County Waters, Texas, in the Gulf of Mexico for total effective consideration of £2.8 million.
The Company has raised £1.52 million through a conditional placing of 6,079,120 new ordinary
shares at 25p per share and 6,079,120 warrants to subscribe for ordinary shares at 30p per share with institutional and other investors. It is intended that the proceeds of the placing will be used to fund development of the I-1 well, a key well within the Mustang Island Block 818-L field, together with providing working capital generally and to pay the costs associated with the acquisition and admission.
The acquisition will constitute a reverse takeover under the AIM Rules. Completion of the acquisition is subject to shareholder approval at a general meeting of the Company originally convened for 18 August 2011, which was adjourned and re-convened for 30 August 2011.
Listing exchange: AIM
Expected first day of trading: 2011-08-31
Expected money raised: £1.52M
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