VANCOUVER, March 10 /CNW/ - Grove Energy Limited (the "Company")
(TSX-V & AIM: GRV), the oil and gas exploration company with its primary
assets in Europe and the Mediterranean Margin, announces that, subject to due
diligence and regulatory approval, it has reached an agreement to issue
US$15,000,000 of subordinated convertible notes (the "Notes"). The offering
will be underwritten by a group of RAB Capital PLC's Energy Funds ("RAB") and
in connection with the placement Grove may pay advisory and underwriting fees,
in certain circumstances, of up to 3.0 per cent of the principal amount of the
Notes.
The Notes have a maturity of five years; bear an 8.75% annual coupon,
payable half-yearly; the principal amount of the notes may be converted, at
the holder's election, into common shares of the Company at a price of C$1.00
per share; and may be converted into common shares, at the Company's election
if the weighted average price of the shares on the TSX Venture Exchange
("TSX-V") is C$1.70 or greater for a period of 25 consecutive days. Interest
may be paid in shares or cash during the first year of the term at the
Company's election and in subsequent years at the holder's election. Shares
issued, if any, in respect of interest will be issued for an amount that
equates to a 10% discount to the 30-day weighted average price of the shares
on the TSX-V preceding the coupon payment date. The Notes will be subordinate
to permitted encumbrances including, among others, any banking facilities or
other debt entered into to develop the Company's properties and will be
secured by a general charge over the Company.
Glenn Whiddon, CEO, commented that: "This financing will allow Grove to
pursue its exploration and development objectives for the foreseeable future.
We are extremely pleased that RAB, a respected investor in the international
energy market, is demonstrating its support for our team, property interests
and strategy and we welcome RAB's continued involvement with Grove."
Grove is committed to building a diversified exploration, appraisal and
development portfolio of oil and gas assets in Europe and the Mediterranean
Margin. Grove's principal business strategy is to generate a sustainable cash
flow as quickly as possible. Grove's assets are in proven hydrocarbon
provinces, close to existing discoveries and infrastructure, in regions that
are net importers of hydrocarbons with high domestic hydrocarbon prices and in
countries with stable legal and political environments.
GROVE ENERGY LIMITED
Per "Anthony Hawkshaw"
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ANTHONY HAWKSHAW, CFO
Some of the statements contained in this release are forward-looking
statements. Forward looking statements include but are not limited to,
statements concerning estimates of recoverable hydrocarbons, expected
hydrocarbon prices, expected costs, statements relating to the continued
advancement of the Company's projects and other statements which are not
historical facts. When used in this document, and on other published
information of the Company, the words such as "could," "estimate," "expect,"
"intend," "may," "potential," "should," and similar expressions are forward-
looking statements. Although the Company believes that its expectations
reflected in the forward-looking statements are reasonable, such statements
involve risk and uncertainties and no assurance can be given that actual
results will be consistent with these forward-looking statements. Various
factors could cause actual results to differ from these forward-looking
statements including the potential for the Company's projects to experience
technical or mechanical problems, geological conditions in the reservoir may
not result in a commercial level of oil and gas production, changes in product
prices and other risks not anticipated by the Company or disclosed in the
Company's published material. Since forward-looking statements address future
events and conditions, by their very nature, they involve inherent risks and
uncertainties.
Neither the TSX Venture Exchange nor the AIM Market operated by London
Stock Exchange plc approves nor disapproves of the information contained
herein.
The information contained herein does not constitute an offer of
securities for sale in the United States, United Kingdom, Canada, Japan
or Australia.
