Pryme Oil And Gas Limited (ASX:PYM) Non Renounceable Rights Issue
Brisbane, Sep 6, 2010 AEST (ABN Newswire) - Further to the announcement made on 31 August 2010, Pryme Oil and Gas Limited (
ASX:PYM) (OTCQX:POGLY) (Pryme or the Company) is pleased to announce a Non Renounceable Rights Issue (Rights Issue) providing the opportunity for eligible shareholders to acquire additional shares in the Company.
The Rights Issue enables all eligible shareholders to participate in the capital raising at the same price as the participants in the recently completed private placement (Placement) with the added advantage of being in possession of more information on the progress towards completion of the Deshotels 20-H No.1 well prior to the closing date of the Rights Issue.
Under the Rights Issue eligible shareholders, including participants in the Placement, will be able to subscribe for 1 new share in Pryme for every 8 fully paid ordinary shares held at the Record Date, at a price of A$0.08 per share. If fully subscribed, 25,006,417 new shares will be issued to raise approximately A$2 million.
The new shares will be offered to Pryme shareholders who are registered at 7.00pm (AEST) on 14 September 2010 (Record Date) and whose address on the Company's register of members is in Australia or New Zealand. The new shares will rank equally with existing shares and Pryme will apply for official quotation of the new shares on the Australian Securities Exchange (ASX).
An Offer Document will be despatched to all eligible shareholders, together with an Entitlement and Acceptance Form, on or around 20 September 2010. Details of the terms and conditions of the Rights Issue will be contained in the Offer Document.
The offer will close at 5.00 pm (AEST) on 11 November 2010 (Closing Date). Valid acceptances must be received before that time.
Application of Funds
The Placement and the Rights Issue will raise approximately A$3.7 million of new cash funds for the Company.
The additional funds, after the expenses of the Placement and the Rights Issue and normal working capital requirements, will be used primarily to ensure that:
- If a decision is taken to commence a second Turner Bayou Chalk project well prior to significant revenue flows from a successful Deshotels 20-H No.1 well, Pryme will be able to participate at its current working interest level;
- In the event of cost overruns on the Deshotels 20-H No.1 well, the Company can continue to fund its proportionate share; and
- The Company can continue with its planned land-based drilling program on the periphery of Catahoula Lake once the water level has been lowered to a level permitting access to drill locations.
Further Details
The timetable for the Rights Issue is attached. Further details of the potential capital structure of Pryme following completion of the Rights Issue and the effect on the control of Pryme are set out in the attached Section 708AA notice.
For the complete Pryme Oil and Gas Limited announcement including proposed timetable, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/63654-ASX-PYM-504207.pdf
About Indago Energy Ltd
Indago Energy Ltd (ASX:INK) (OTCMKTS:POGLY) is an Australian listed company engaged in oil and gas exploration, development and production. Indago's project portfolio includes liquid rich producing assets together with substantial oil development and exploration acreage in the United States.
The Company's Exploration and Production focus is on high growth oil and gas projects offering scalability of production, cash flows and reserves. Indago currently has several producing projects together with a significant acreage position. The Company's immediate focus is the development of its Capitola Oil Project located in an active region of the Cline Shale resource play along the Eastern Shelf of the Permian Basin, Texas. The project's core development and exploitation opportunities are shallower multiple "stacked" sandstones and limestones to depths of 7,000 feet which are effectively produced from vertically drilled wells. Indago's value driven model is executed through exploiting shallower, well defined intervals with advanced completion and stimulation technology within known produced oil fields together with exposure to the emerging Cline Shale resource play.
Indago's shares are publicly traded on the Australian Securities Exchange (ASX ticker: INK) and also as American Depositary Receipts on the OTCQX (ADR ticker: POGLY).
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