Business
Issue of Equity, Granting of
Issue of Equity, Granting of.
About this update from Tern Plc
[{"type":"text","content":"\n RNS Number : 3231V Chalkwell Investments PLC 01 November 2010 \n \n\n \n \n1 November 2010\n \nChalkwell Investments plc.\n(\"Chalkwell\" or the \"Company\")\n \nIssue of Equity, Granting of Loan, Changes in Shareholdings and Board Appointment\n \n \nChalkwell, the AIM-quoted investment company, with a focus on the resource sector, is pleased to announce that it has completed a placing of 2,000,000 new ordinary shares of £0.001 each (\"New Ordinary Shares\") at a price of 30p per share, (the \"Placing\") for a total value of £600,000. The proceeds will be used as to £100,000 for the general working capital needs of the Company and as to up to £500,000 as an unsecured loan made by Chalkwell to Core Oil & Gas, Inc. (\"Core\") (\"Loan\"). \n \nCore is a US-focused oil and gas company, which has acquired a 33.3% working interest and a 29.13% net revenue interest in respect of Mustang Island in Kleburg County, Texas (State of Texas Oil and Gas Lease numbers 108873 and 108877) (\"Mustang Interest\").\n \nMustang Island is a shallow inshore oil and gas asset, located in the Gulf of Mexico, with infrastructure in place and nearby oil and gas pipelines available. Mustang Island is a proven behind-pipe asset, comprised of four shut-in wells previously drilled by Chevron Corporation. Core estimates that the Mustang Island asset contains total initial P90 reserves of up to 11.8 million barrels of oil equivalent (\"boe\") (Core's share of reserves).\n \nThe Company understands that Core intends to acquire, following completion of the Placing and granting of the Loan, participation interests in respect of Budde Ferry 27.3 (Oceana County, Michigan), Baron 14-15 (Oceana County, Michigan), and Paradise 4 (Grand Traverse County, Michigan). Core estimates that these assets contain additional total initial P90/P50 reserves of up to 6.38 million boe (Core's share of reserves).\n \nIn addition, Core has a number of other oil and gas prospects in the United States of America under active consideration. Core's strategy is to generate short-term cash flow from smaller near-term prospects whilst it develops larger reserves, including Mustang Island.\n \nCore will use the Loan to pay the first tranche of a total consideration of US$1,333,000 being US$133,000 to Seadrift Manage...