Pryme Energy Limited (ASX:PYM) Announce Non-Renounceable Rights Issue to Raise Approximately A$4 Million
Brisbane, June 15, 2011 AEST (ABN Newswire) - Pryme Energy Limited (
ASX:PYM) (PINK:POGLY) is pleased to announce a Non Renounceable Rights Issue (Rights Issue) providing the opportunity for eligible shareholders to acquire additional shares in the Company.
Under the Rights Issue eligible shareholders will be able to subscribe for 1 new share in Pryme for every 7 fully paid ordinary shares held at the Record Date, at a price of A$0.125 per share. If fully subscribed, 32,230,168 new shares will be issued to raise approximately A$4 million.
The new shares will be offered to Pryme shareholders who are registered at 7.00pm (AEST) on 23 June 2011 (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 29 June 2011. Details of the terms and conditions of the Rights Issue will be contained in the Offer Document.
The offer will close at 5.00pm (AEST) on 13 July (Closing Date). Valid acceptances must be received before that time.
Application of Funds
The Rights Issue, which is not underwritten, may raise up to approximately A$4 million of new cash funds for the Company. The Company has engaged Shaw Corporate Finance to place any Shortfall under the Rights Issue on a reasonable endeavours basis.
The additional funds, after the expenses of the Rights Issue and normal working capital requirements, will be used primarily to ensure that in the event of cost overruns on the Company's second well in the Turner Bayou Chalk project, Deshotels 13H No.1 well, the Company can continue to fund its proportionate share.
Further Details
The timetable for the Rights Issue is attached (see link below). 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 Section 708AA notice lodged separately.
The PROPOSED TIMETABLE and Appendix 3B can be viewed at: http://www.abnnewswire.net/media/en/docs/545387.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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