AusTex Oil Limited (ASX:AOK) Announce An Underwritten Rights Issue To Raise A$5 Million To Fund Oil And Gas Interests in Kansas And Oklahoma
Sydney, Mar 24, 2010 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK) (PINK:ATXDF) is pleased to announce a fully underwritten Rights Issue to Shareholders to raise approximately A$5 million after costs (Offer).
The Offer will allow shareholders to subscribe for one (1) share (New Share) for every five (5) shares held at 5pm on Monday, 19 April, 2010 at the issue price of A$0.16 per New Share together with one (1) attaching option (New Option) for every two (2) New Shares subscribed for. The New Options will be exercisable at A$0.25 each on or before 1 December 2011. The Company will be seeking quotation of the New Options on the Australian Securities Exchange. Other terms attaching to the New Options will be set out in a prospectus to be issued by the Company in relation to the Offer.
Pursuant to the Rights Issue the Company will issue up to 33,885,000 New Shares and 16,942,500 New Options in the Company, to raise up to A$5,421,600 (excluding any proceeds upon exercise of any of the New Options) before costs.
As part of Novus Capital Limited's (Novus) ongoing relationship with the Company as Broker and Corporate Adviser, Novus has agreed to fully underwrite the Rights Issue, subject to commercial terms and conditions to be announced.
USE OF FUNDS RAISED
The proceeds of the Rights Issue will be used:
- To predominately fund the ongoing development drilling and exploration of the Company's oil and gas interests in Kansas and Oklahoma.
- For working capital purposes; and
- For costs of the Offer.
ELIGIBILITY
To be eligible to participate in the Rights Issue, applicants must:
- be registered as a shareholder at 5.00pm (Sydney time) on Monday 19 April 2010 (Record Date); and
- have an address in Australia or New Zealand as recorded on the Share Registry as at the Record Date.
The Company has determined that it would be unreasonable to extend the Offer to Shareholders resident outside Australia or New Zealand, having regard to the:
- number of Shareholders outside Australia and New Zealand;
- number and value of New Shares offered; and
- legal and regulatory requirements and costs associated with opening the Rights Issue to those Shareholders.
TIMETABLE---------Key dates of the Rights Issue are as follows:-----------------------------------------------------------------Event Timeline-----------------------------------------------------------------Announcement of the Offer Wednesday 24 March 2010Lodgement of Prospectus with ASIC Friday 9 April 2010Shares trade "ex-rights" Tuesday 13 April 2010Record Date to determine entitlements of Monday 19 April 2010Shareholders to participate in the OfferProspectus sent to Eligible Shareholders Friday 23 April 2010Open Date [Friday 23 April 2010]Closing Date Tuesday 11 May 2010Allotment of New Shares and New Options Wednesday 12 May 2010Dispatch of shareholding statements Friday 14 May 2010Trading on ASX of New Shares on a normal Tuesday 18 May 2010settlement basis-----------------------------------------------------------------
This timetable is indicative only and subject to change. The Company reserves the right to vary the abovementioned dates.
About AusTex Oil Limited
AusTex Oil Limited (ASX:AOK) (OTCQX:ATXDY) is a Public Company listed on the Australian Securities Exchange (ASX) and the OTCQX.
AusTex is focused on exploration and development of oil and gas leases in the USA. The company produces oil and gas in Oklahoma and Kansas and is currently developing producing leases in both states with interests in 11,600 net acres of oil and gas leases in the Mississippi Lime Play. The Company has net production of circa 800 boe/day with Independent 1P reserves certified at 3.505 Million BOE with NPV10 of US34.8 million as at 31 December 2015.
US operations are based in Tulsa, Oklahoma, with an office at 1801 East 71st Street. International Energy Corporation (Oklahoma) is a wholly owned subsidiary and a licensed oil and gas operator in Oklahoma and Kansas.
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