5th Sep 2008 09:37
05 September 2008
Correction: This RNS replaces RNS No. 8047C which contained an error. The correct date for admission to trading of the New Shares is 10 September 2008 and not as previously reported.
CIRCLE OIL PLC
("Circle" or the "Company")
£33 MILLION PRIVATE PLACING
LIBYA OIL HOLDINGS LTD BECOMES MAJOR SHAREHOLDER
Circle Oil Plc, the international oil and gas exploration and development company, is pleased to announce that the Company has successfully raised £33 million by way of a placing of 173,684,211 new ordinary shares (the "New Shares") at a price of 19 each.
The principal participants in the placement are Libya Oil Holdings Ltd, a wholly owned subsidiary of Libya Africa Investment Portfolio, who invested £19 million (representing a 29.66% interest in Circle) and Kaupthing Bank HF of Iceland who invested £10 million (representing a 15.61% interest in Circle).
Circle and Libya Oil Holdings have further agreed to seek opportunities to work together on projects in Circle's present areas of interest.
These funds will be used to cover the cost of Circle's aggressive exploration programme in Morocco, Tunisia and Egypt. Circle plans to drill up to 15 wells between now and the end of 2009 and will also conduct a large 3D seismic study on Block 49 in Oman. Circle and its partners currently have three drilling rigs under contract to carry out the planned drilling programme.
The New Shares will be admitted to trading on AIM at 08.00 on Wednesday 10 September 2008. Following admittance of the New Shares, Circle will have 337,131,411 ordinary shares in issue.
David Hough, CEO of Circle, said:
"I am absolutely delighted that Circle has been able to raise such significant new investment in the Company, particularly from investors of this calibre, in what remain very tough financial market conditions. Shareholders can rightly regard this success as a real endorsement of Circle's strategy and future prospects. We have ahead of us much to be excited over, beginning on 15 September with Circle's first production revenues, and over the next year, with an aggressive exploration drilling programme. I look forward to updating shareholders on our progress."
For further information contact:
Circle Oil plc (+44 20 7638 9571)
David Hough, CEO
Collins Stewart Europe Limited (+44 20 7523 8350)
Adrian Hadden
James Cassley
Fox-Davies Capital (+44 207 936 5230)
Richard Hail
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
George Cazenove
Notes for Editors
Libya Oil Holdings Ltd
Libya Oil Holdings Ltd ("LOHL"), registered in Mauritius, is wholly and beneficially owned by Libya Africa Investment Portfolio.
LOHL has been established to trade in and to undertake petroleum exploration, exploitation, production, bunkering, storage and supply of crude oil, gas, oil products and petrochemicals of all types and to undertake any type of related investments.
LOHL owns several subsidiaries and affiliates throughout the African continent.
Libya Africa Investment Portfolio is an investment fund with share capital of US$5.0 billion dedicated to invest in all economic sectors in Africa and neighbouring countries.
Kaupthing Bank HF
Kaupthing Bank is a Northern European bank offering integrated financial services to companies, institutional investors and individuals. These services include banking, investment banking, capital markets services, treasury services, asset management and comprehensive wealth management for private banking clients. The Bank operates in fifteen countries and is listed on the OMX Nordic Exchange in Stockholm and Iceland.
Circle Oil Plc
Circle Oil Plc (AIM: COP) is an international oil & gas exploration and development Company with an expanding portfolio of assets in Morocco, Tunisia, Oman, Egypt and Namibia with a combination of low-risk near-term production and significant exploration upside potential. The Company listed on AIM in October 2004.
Internationally, the Company has continued to expand its portfolio over the past 2 years and now has assets in the Rharb Basin, Morocco; the Ras Mamour Permit in southern Tunisia; the Mahdia Permit offshore Tunisia; the Grombalia Permit in northern Tunisia; the Zeit Bay area of Egypt and the Owambo Basin, Namibia. Circle also has the largest licence holding of any Company in Oman. In addition to its highly prospective Block 52 offshore, the Company also has an ongoing exploration program in Block 49 onshore.
The Company's strategy is to locate and secure additional licenses in prospective hydrocarbon provinces and through targeted investment programmes, monetise the value in those assets for the benefit of shareholders. This could be achieved through farm-outs to selected partners who would then invest in and continue the development of the asset into production, or Circle may itself opt to use its own expertise to appraise reserves and bring assets into production, generating sustained cash flow for further investment.
Further information on Circle Oil is available on its website - www.circleoil.net
Related Shares:
Circle Oil Plc