Business
IGas Share Placing
IGas Share Placing.
About this update from Star Energy Group Plc
[{"type":"text","content":"\n RNS Number : 4595X Island Gas Resources PLC 25 June 2008 \n \n25 June 2008\n\nIsland Gas Resources plc (the 'Company')\n\nPlacing by Brewin Dolphin Investment Banking of 3,222,460 New Ordinary \nShares of 50p each at 65p per New Ordinary Share\n\nIsland Gas Resources plc (AIM: IGAS), a leading developer of Coal Bed Methane in the UK and prospective producer of North Sea quality gas from virgin coal seams, announces that it is placing 3,222,460 new ordinary shares of 50 pence each in the Company (the 'Placing Shares') with institutional investors at a price of 65 pence per share (the 'Placing Price) to raise approximately £2.1 million (before expenses) (the 'Placing').\n\nThe net proceeds of the Placing will be used primarily to fund the Company's working capital requirements and to enable the Company to secure drilling and exploration services required in developing the Company's existing and recently-awarded acreage. Based on the Company's current projections, the net proceeds of the placing will provide the Company with more than sufficient working capital for at least 12 months from commencement of dealings in the Placing Shares on AIM.\n\nIn connection with the Placing, Non-Executive Directors, Richard Armstrong and Peter Redmond have also agreed to subscribe for 38,460 and 30,770 Placing Shares respectively at the Placing Price. Following these purchases, Richard Armstrong has an interest in 58,460 ordinary shares (excluding warrants) in the Company, representing 0.09% of the enlarged issued share capital of the Company and Peter Redmond has an interest in 50,770 ordinary shares in the Company (excluding warrants), representing 0.08% of the enlarged issued share capital of the Company.\n\nThe Placing Shares, which represent approximately 5.17% of the enlarged issued share capital of the Company, will rank pari passu in all respects with the existing ordinary shares in the Company. Application has been made for the Placing Shares to be admitted to trading on AIM and it is expected that dealings will commence on 30 June 2008.\n\nCommenting on the placing, Andrew Austin, Chief Executive of the Company, said:\n\n'This is an exciting time for IGas. Following our recent success in the UK's 13th onshore oil and gas licensing round, IGas now has rights to 1,640 square kilometres of l...