AusTex Oil Limited (ASX:AOK) Announces Capital Raising Non Renounceable 1 for 5 Entitlement Offer
Sydney, April 12, 2010 AEST (ABN Newswire) - Austex Oil Limited (
ASX:AOK) announced to the Australian Securities Exchange (ASX) on 24 March 2010 a non renounceable pro-rata entitlement offer of up to 33,885,000 new fully paid ordinary shares (New Shares) to raise up to A$5,421,600 (Entitlement Offer). The New Shares issued under the Entitlement Offer will be fully paid ordinary shares ranking equally in all respects with fully paid ordinary shares in the Company already on issue.
The net proceeds of the Entitlement Offer will be used primarily to fund exploration and development on the Company's leases in Kansas and Oklahoma and also for working capital.
The Entitlement Offer is being made to shareholders as at 5:00 pm on 19 April 2010 (Record Date) with a registered address in Australia or New Zealand (Eligible Shareholders).
The Entitlement Offer gives Eligible Shareholders the opportunity to participate in the Entitlement Offer on the basis of 1 new ordinary share for every 5 ordinary shares held at the Record Date at an issue price of A$0.16 together with 1 New Option (New Options) for every 2 shares subscribed for under the Entitlement Offer at an exercise price of A$0.25 per option exercisable on or before 1 December 2011.
The Entitlement Offer price of A$0.16 per share represents an 11.11% discount to the closing ASX price of A$0.18 for the Company's shares on 19 March 2010 being the last day of trading in the Company's shares prior to the announcement on 24 March 2010. This also represents a 14.71% discount to the Company's 1 month volume weighted average share price of A$0.1876 between 24 February 2010 and 24 March 2010.
The Entitlement Offer is non-renounceable and as such Eligible Shareholders will not be entitled to trade or sell their entitlements. Any entitlements to New Shares not taken up will lapse and will form part of the shortfall. Shareholders will receive no payment for entitlements not taken up.
Eligible Shareholders who take up their entitlement in full can also apply for additional new shares in excess of their entitlement (Top Up Shares). In the event of a shortfall, the Company reserves the right to allocate any shortfall via the Underwriter of New Shares to subscribers of Top Up Shares at its discretion.
Details of the Entitlement Offer are contained in the Prospectus, a copy of which was lodged with the ASX today, and which will be sent to all eligible shareholders, together with an Entitlement and Acceptance Form. A copy of the Prospectus is available at www.austexoil.com and on www.asx.com.au
The Company has applied for quotation of the New Shares and New Options to be issued pursuant to the Entitlement Offer. Please refer to the Appendix 3B filed with the ASX today for detailed information in relation to the Entitlement Offer.
The number of issued shares and options at the date of this notice and the total number of issued shares and options at the close of the Entitlement Offer are as follows:
--------------------------------------------------Number of Shares currently onissue and quoted on ASX 169,425,000--------------------------------------------------Number of Options currently onissue none of which are quoted on ASX 3,750,000--------------------------------------------------Maximum number of New Sharesoffered in the Entitlement Offer: 33,885,000--------------------------------------------------Maximum number of New Options offered in the Entitlement Offer: 16,942,500--------------------------------------------------Maximum number of Shares and Options on issue upon completion: 224,002,500*--------------------------------------------------
*This number does not include the 5,000,000 options which are subject to shareholder approval at the Company's forthcoming Extraordinary General Meeting (EGM) on 13 April 2010. A copy of the EGM Notice was lodged with the ASX on 10 March 2010.
It is proposed that the Entitlement Offer will be conducted according to the following indicative table:
-----------------------------------------------------------Event Indicative Date*-----------------------------------------------------------Announcement of the Entitlement Offer 24 March 2010-----------------------------------------------------------Lodgement of Prospectus 9 April 2010-----------------------------------------------------------Shares trade 'ex-entitlements' - the date from which shares commencetrading without the entitlement to participate in the Entitlement Offer 15 April 2010-----------------------------------------------------------Record Date to determine entitlements 21 April 2010-----------------------------------------------------------Prospectus and Entitlement and Acceptance Forms despatched 23 April 2010-----------------------------------------------------------Closing Date. Last day for acceptance and payment in full 11 May 2010-----------------------------------------------------------New Shares quoted on a deferred settlement basis 12 May 2010-----------------------------------------------------------Statements for New Securities expected to be despatched no later than 14 May 2010-----------------------------------------------------------Normal trading of New Securities on the ASX expected to commence by no later than 17 May 2010-----------------------------------------------------------
*These dates are indicative only and subject to change.
Eligible shareholders should read all the information set out in the Prospectus, including the summary risk factors set out in section 7 of the Prospectus. If you have any queries, please consult your professional adviser.
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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