19th Jan 2006 07:01
Roc Oil Company Limited19 January 2006 19 January 2006 ROC OIL COMPANY LIMITED ("ROC") STOCK EXCHANGE RELEASE ROC SHARE PLACEMENT TO RAISE A$76 MILLION /GBP 32 MILLION FOR EXPLORATION IN ANGOLA ROC is pleased to advise it intends to place 28 million fully paid ordinaryshares (14.9% of the Company's current issued share capital) at a price ofA$2.71(1) / £1.15 per share to raise A$75.9 million(1) / £32.2 million, beforeexpenses. After the placement, the issued capital of the Company will be215.9 million shares of which approximately 20%-25% is expected to be held by UKbased institutional investors. The placement price represents a 1.5% discount to the volume weighted averageshare price for the first 12 trading days of January and is equivalent to thevolume weighted average price of the shares traded in the last month. All the shares will be placed with institutional investors in London through aprocess managed by ROC's nominated adviser and broker ('NOMAD'), OrielSecurities Limited. London-based Equity Development acted in a support capacity. Trading of the new shares on both the UK Alternative Investment Market ('AIM')and the Australian Stock Exchange ('ASX') is expected to commence on Wednesday25 January. From the date of issue the new shares will rank equally withexisting fully paid ordinary shares. Because the new shares represent less than15% of the Company's issued capital, shareholder approval is not required. The primary purpose of the placement is to fund the recently announcedacceleration of ROC's exploration programme in the Cabinda South Block, onshoreAngola. ROC has a 60% Working Interest (75% Contributing Interest) in this areaand anticipates a net expenditure of at least US$34 million / £20 million inAngola during 2006. Most of the expenditure will relate to the acquisition of250 sq km of 3D seismic and 200 km of contingent 2D seismic together with thedrilling of up to three exploration wells, subject to rig availability. Thelocation of the wells, the first of which is anticipated to begin drilling inSeptember 2006, will be based upon seismic data acquired by ROC in 2005, theinterpretation of which is expected to be completed within the next few months.It is anticipated that a successful exploration drilling programme will lead toa prompt appraisal drilling programme. Commenting on the placement, ROC's CEO Dr John Doran stated that: "In addition to allowing ROC to greatly accelerate its exploration operationsonshore Angola, the placement, which was substantially over subscribed, alsodelivers another key strategic objective: the establishment of a significantshareholder base and a liquid market for ROC shares in London." (1) based on an A$/£ exchange rate of 2.357 Michelle Manook For further information pleaseGeneral Manager - Corporate Affairs contact: Dr John Doran on Tel: +61-2-8356-2000 Fax: +61-2-9380-2635 E-mail: [email protected] Or visit ROC's website: www.rocoil.com.au Dr Kevin Hird General Manager Business Development Tel: +44 (0)207 586 7935 Fax: +44 (0)207 722 3919 Email: [email protected] Nick Lambert Bell Pottinger Corporate & Financial Tel: +44 (0)207 861 3232 This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Rockpool Acqui