Business
Placing of New Ordinary Share
Placing of New Ordinary Share.
About this update from Afentra Plc
[{"type":"text","content":"\n RNS Number : 4352X Sterling Energy PLC 14 August 2009 \n \n\nTHIS ANNOUNCEMENT IS NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN WHOLE OR IN PART, IN, INTO OR FROM THE UNITED STATES, JAPAN, CANADA OR AUSTRALIA OR ANY OTHER JURISDICTION WHERE TO DO SO WOULD CONSTITUTE A BREACH OF THE RELEVANT SECURITIES LAWS OF SUCH JURISDICTION. \n\n14 August 2009 \nSTERLING ENERGY PLC \n('Sterling' or the 'Company') \n\nPlacing of 4,807,315,000 new Ordinary Shares to raise £62.5 million, proposed board changes and termination of offer talks\n\nSterling, the AIM listed independent oil and gas exploration and production company with interests in the Middle East, Africa and the Gulf of Mexico, today announces that it has conditionally placed 4,807,315,000 new ordinary shares ('Ordinary Shares') of one pence each (the 'Placing Shares') at 1.3 pence per share (the 'Placing Price') to raise £62.5 million (before expenses) (the 'Placing'). \n\nHighlights: \n\n\nProceeds of the Placing, together with the cash the Company will receive from its operating activities, to be used to: \n\n\nrepay $35 million of debt upon receipt of the Placing proceeds;\n\n\nprovide a stronger negotiating position for the Company in the ongoing sale process relating to the Company's US assets;\n\n\nstrengthen the working capital position of the Group. The funds could be used to: \n- explore the highly prospective Sangaw North block in Kurdistan; \n- strengthen the Company's negotiating position in discussions with\n potential farm in partners for its assets in Cameroon and Madagascar; and\n- provide funding for the Company to pursue new opportunities in line with\n its exploration strategy. \n\n\n\n\nAmended waiver agreement with banks to mid February 2011, conditional upon completion of the Placing. \n\n\n\n\nBoard to be strengthened with the addition of Alastair Beardsall as Executive Chairman and Keith Henry as a Non-executive Director. \n\n\n\n\nPlacing Price represents a discount of 52.6 per cent. to the closing middle market price on 13 August 2009. \n\n\n\n\nBy mid Novemb...