Extension of Convertible Loan Agreement (9954D)
24 May 2012 - 4:01PM
UK Regulatory
TIDMCOP
RNS Number : 9954D
Circle Oil PLC
24 May 2012
24 May 2012
Circle Oil Plc
("Circle" or the "Company")
Extension of US$30 million Convertible Loan Agreement
Circle Oil Plc (AIM: COP), the international oil and gas
exploration, development and production company, is pleased to
announce that it has reached agreement with a subsidiary of Kuwait
based PetroLink Holding Company ("PetroLink" itself a subsidiary of
KGL Investment Company) to extend its US$30 million convertible
loan (the "Loan"), due to mature on 19 July 2012, for a further
period of three years to 19 July 2015.
The Loan, which is convertible into ordinary shares of the
Company has a conversion price of GBP0.25 per share during the
first year of the extension, GBP0.275 per share during the second
year and GBP0.30 per share during the third year (based on an
exchange rate of US$1.5697 to GBP1). The Loan will continue to
carry a 6% coupon payable in US dollars quarterly in arrears.
In addition the Company has agreed to grant PetroLink options
over 30 million shares (representing 5.3% of the current issued
share capital of the Company) exercisable for a period of three
years from 19 July 2012 at an exercise price of GBP0.30 per share
during the first year of the extension, GBP0.325 per share during
the second year and GBP0.40 per share during the third year.
Prof Chris Green, CEO, said:
"We are very pleased to have agreed this three year extension
with PetroLink which is very beneficial for the Company, provides
an enhanced strike price in years two and three and continues our
strong relationship with PetroLink."
For further information contact:
Circle Oil Plc (+44 20 7638 9571)
Professor Chris Green, CEO
Brendan McMorrow, CFO
Evolution Securities (+44 20 7071 4300)
Chris Sim
Neil Elliot
Fox-Davies Capital (+44 20 3463 5010)
Daniel Fox-Davies
Richard Hail
Citigate Dewe Rogerson (+44 20 7638 9571)
Martin Jackson
Kate Lehane
Murray Consultants (+353 1 498 0300)
Joe Murray
Joe Heron
Notes to Editors
Circle Oil Plc (AIM: COP) is an international oil & gas
exploration, development and production Company with an expanding
portfolio of assets in Morocco, Tunisia, Oman and Egypt with a
combination of low-risk near-term production and significant
exploration upside potential. The Company listed on AIM in October
2004.
Internationally, the Company has continued to expand its
portfolio over the past two years and now has assets in the Rharb
Basin, Morocco; the Ras Marmour Permit in southern Tunisia; the
Mahdia Permit offshore Tunisia; the Grombalia Permit in northern
Tunisia and the Zeit Bay area of Egypt. Circle also has the largest
licence holding of any company in Oman. In addition to its
prospective Block 52 offshore, Circle also has an ongoing
exploration programme in Block 49 onshore.
Circle's strategy is to locate and secure additional licences in
prospective hydrocarbon provinces and through targeted investment
programmes, monetise the value in those assets for the benefit of
shareholders. This could be achieved through farm-outs to selected
partners who would then invest in and continue the development of
the asset into production, or Circle may itself opt to use its own
expertise to appraise reserves and bring assets into production,
generating sustained cash flow for further investment.
Further information on Circle is available on its website at
www.circleoil.net.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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