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Placing to raise £1.5 million to pursue Oilfield Enhancement Opportunities, Corporate Update and
New World Oil and Gas Plc, the oil and gas operating, exploration and development company, has announced that it has raised £1.5 million before expenses through a placing of 2,727,272,727 new ordinary shares at a price of 0.055p per share with existing and new investors. Cornhill Capital acted as the Placing Agent.
Overview:
· Net proceeds of the Placing will be used to:
o Continue efforts to find farm-in partners for New World’s working interests in both the 100% owned Blue Creek Project in Belize and the 25% owned Danica Jutland and Danica Resources projects in Denmark in order to continue development; and
o pursue additional interests, in particular opportunities in the oilfield enhancement space
· Competent Person’s Report currently being updated for recently renewed Danish Licences – results expected in Q2 2015
· Directors continuing to forego salaries from February 2015 until such time the Company’s Remuneration Committee deems it to be reasonable in light of New World’s financial position
· Following completion of the Placing the Company will have approximately £2 million in cash
o 7,478,334 shares of the Company held by Yorkville Advisors, placees in New World’s March 2013 placing, will be purchased from Yorkville Advisors in conjunction with the Placing, following which New World will no longer have any financing agreements in place with Yorkville Advisors
New World’s Non-Executive Chairman, Chris Einchcomb, stated, “We are delighted with the support we have received from both existing and new investors for our decision to pursue opportunities we have been assessing in the oilfield enhancement space where we believe there is significant potential. We are particularly excited and focused on delivering projects that can demonstrate a cash-flow and a predictable return on investment.
“In line with delivering the utmost value for our shareholders, myself and the New World Board are not taking salaries so that we can spend every penny on our efforts to bring the Company into cash-flow and reward our loyal investors.
“With this in mind, along with assessing new exciting opportunities we continue to actively seek farm-in partners for our projects in Denmark and Belize in order to progress these highly prospective assets. I look forward to providing further updates in due course.”
Details of Placing:
Application will be made for the Placing Shares to be admitted to trading on AIM (‘Admission’), and Admission is expected to occur, and dealings are expected to commence on or around 0800 on 20 May 2015. The Placing Shares, when issued, will rank pari passu in all respects with the Company’s existing ordinary shares and will represent 79.5per cent. of the Company’s enlarged issued share capital. Following the Placing the Company will have 3,429,996,440 ordinary shares in issue with voting rights. The Company has no Ordinary Shares in treasury and as a result, the total number of voting rights in the Company will be 3,429,996,440. This figure may therefore be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change in their interest in, the share capital of the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.
Following completion of the Placing the Company will have approximately £2 million in cash. Net proceeds of the Placing amounting to £1,387,500 will be used to continue efforts to find farm-in partners for New World’s working interests in both the 100% owned Blue Creek Project in Belize and the 25% owned Danica Jutland and Danica Resources projects in Denmark in order to continue development and to pursue additional interests, in particular opportunities in the oilfield enhancement space.
In addition, the 7,478,334 ordinary shares of the Company currently held by Yorkville Advisors, who were the placees in New World’s March 2013 placing, will be purchased from Yorkville Advisors in conjunction with the Placing. As a result New World will no longer have any financing agreements in place with Yorkville Advisors.
As part of its fees as Placing Agent, the Company will grant JIM Nominees as registered holder, warrants valid for three years from the completion of the Placing which shall give Cornhill the right to acquire 10 per cent. of the gross aggregate value of the Placing being over a total of 272,727,273 new Ordinary Shares. The warrants shall vest upon the share price trading at twice the Placing Price over five consecutive trading days and shall be convertible into equity of the Company at the Placing Price.
