TIDMGBP
RNS Number : 1451Z
Global Petroleum Ltd
16 September 2020
16 September 2020
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014 ('MAR). Upon the
publication of this announcement via a Regulatory Information
Service ('RIS'), this inside information is now considered to be in
the public domain.
Global Petroleum Limited
("Global" or "the Company")
Placing and Subscription to raise GBP1.40 million
Global Petroleum Limited (AIM: GBP) is pleased to announce that
it has successfully raised GBP1,327,500 million in aggregate before
costs (the "Placing"), through the Placing of 177,000,000 Ordinary
Shares (the "Placing Shares") at a Placing Price of 0.75 pence per
share. In addition, certain Directors of the Company intend to
subscribe for, in aggregate, 9,666,667 Ordinary Shares (the
"Subscription"), raising GBP72,500. In aggregate, the gross quantum
of funds raised by the Placing and the Subscription will be GBP1.40
million.
As a further component of the Placing and the Subscription,
186,666,667 Warrants are also being issued at an exercise price of
1.5p per share for a period of 2 years (one Warrant for every one
new Ordinary Share). In the event the Warrants are exercised in due
course in full, associated proceeds will be GBP2.80 million, with
the result that the Company will have raised gross proceeds of
GBP4.20 million at a weighted average price of 1.125 pence per
share.
Panmure Gordon UK Limited ("Panmure Gordon") acted as the
Company's sole broker in respect of the Placing.
Rationale for the Placing
On 20 July 2020 Global announced an updated estimate of
prospective resources for its licence PEL 0094, following its
interpretation of the historic 3D seismic data over Block 2011A,
which amounted to 687 MMbbl unrisked best estimate net prospective
resources. It is the Company's intention to seek a farm-in partner
for exploration drilling on PEL 0094, and potentially also to
progress the work programme over the PEL 0029 area.
From a wider perspective, Namibia has seen multiple farm-outs or
acquisitions completed since 2017 by companies such as Qatar
Petroleum, Total, ONGC, Kosmos, and most notably Exxon. Moreover,
there are reported to be several highly prospective exploration
wells planned for the next 18 months, starting with Total's Venus-1
well which is reportedly scheduled for Q4 2020.
Proceeds from the Placing and Subscription will provide in full
the funds needed for the work commitments (firm and contingent) in
PEL 0029 during the remaining period of the Licence, and in PEL
0094 for the forthcoming exploration period to September 2021.
The Company announced in April 2020 that it had made cuts in
various categories of its G&A, notably the UK Directors agreed
to reduce their annual remuneration by 25 per cent, effective 1
April 2020.
Admission of and Dealings in the Placing and Subscription
Shares
Application has been made to AIM for the Placing and
Subscription Shares, which will rank pari passu with existing
Ordinary Shares, to be admitted to trading on AIM ("Admission").
Dealings are expected to commence at 8.00 a.m. on 30 September
2020.
Following Admission, the total issued share capital of the
Company will be 389,319,594 ordinary shares. Accordingly, the
figure of 389,319,594 may be used by shareholders as the
denominator for the calculations by which they will determine if
they are required to notify their interest in, or a change to their
interest in the Company under the FCA's Disclosure Guidance and
Transparency Rules.
Directors' Subscription
Certain Directors in the Company intend to subscribe for shares
in the Subscription (the "Subscription Shares") in connection with
and on the same terms as the Placing, including the Warrants. The
number of Subscription Shares conditionally subscribed for by each
such Director pursuant to the capital raising, and their resulting
shareholdings on Admission, are as set out below:
Shareholder Existing Number of Number of Ordinary Percentage
Ordinary Existing Subscription Shares held of Enlarged
Shares Ordinary Shares subscribed post Admission Share Capital
held Shares held for held
as a percentage
of all Existing
Ordinary
Shares
Peter Taylor 41,629,071 20.54% 4,000,000 45,629,071 11.72%
----------- ----------------- ------------------- ---------------- ---------------
Peter Blakey 39,840,133 19.66% 2,000,000 41,840,133 10.75%
----------- ----------------- ------------------- ---------------- ---------------
Peter Hill 2,744,472 1.35% 2,000,000 4,744,472 1.22%
----------- ----------------- ------------------- ---------------- ---------------
John van der
Welle 291,151 0.14% 1,000,000 1,291,151 0.33%
----------- ----------------- ------------------- ---------------- ---------------
Andrew Draffin 0 0.0% 666,667 666,667 0.17%
----------- ----------------- ------------------- ---------------- ---------------
Pursuant to their subscription, the Directors will also be
issued with the following warrants:
Director Warrants issued pursuant to the Directors'
Subscription
Peter Taylor 4,000,000
-------------------------------------------
Peter Blakey 2,000,000
-------------------------------------------
Peter Hill 2,000,000
-------------------------------------------
John van der
Welle 1,000,000
-------------------------------------------
Andrew Draffin 666,667
-------------------------------------------
The participation of certain Directors, as stated above,
constitute related party transactions for the purposes of the AIM
Rules. The Director who is independent of the related party
transaction, being Garrick Higgins, having consulted with Panmure
Gordon, the Company's nominated adviser for the purposes of the AIM
Rules, considers the terms of participation of each of Peter
Blakey, Andrew Draffin, Peter Hill, Peter Taylor and John van der
Welle in the Subscription to be fair and reasonable insofar as
Shareholders are concerned.
Peter Hill, Global Petroleum's CEO, commented:
"We are delighted with the investor response to this Placing,
particularly given the uncertain economic climate, and would like
to welcome new shareholders to the Company.
"The funds raised will enable us to undertake our planned work
on our Namibian acreage, which was further de-risked following our
recent re-interpretation of the historic 3D seismic on PEL 0094. We
shall also renew our farm-out campaign at a time when we believe
there is substantial interest in Namibia following the recent
acreage acquisitions by majors and NOCs, as well as the upcoming
wells.
"This is an exciting period for both Global and Namibia, and we
look forward to providing further updates as we progress our
work."
For further information please visit: www.globalpetroleum.com.au
or contact:
+44 (0) 20 3 875
Global Petroleum Limited 9255
Peter Hill, Managing Director & CEO
Andrew Draffin, Company Secretary
Panmure Gordon (UK) Limited (Nominated Adviser +44 (0) 20 7886
& Sole Broker) 2500
Hugh Rich / Nick Lovering / Ailsa MacMaster
Nominated Adviser: Nicholas Harland
Tavistock (Financial PR & IR) +44 (0) 20 7920
Simon Hudson / Nick Elwes / Barney Hayward 3150
The Placing does not constitute a public offer of securities in
accordance with the provisions of Section 85 of the Financial
Services and Markets Act 2000 and accordingly a prospectus will not
be issued in the United Kingdom.
This announcement does not constitute an offer of securities in
the United Kingdom or in any other jurisdiction, including the
United States of America.
Panmure Gordon (UK) Limited, which is authorised and regulated
in the United Kingdom by the Financial Conduct Authority (the
"FCA"), is acting as Nominated Adviser and broker to the Company
for the purposes of the AIM Rules for Companies and the AIM Rules
for Nominated Advisers in connection with the Placing and is not
acting for, and will not be responsible to, any person other than
the Company for providing the protections afforded to customers of
Panmure Gordon (UK) Limited or for advising any other person on any
transaction or arrangement referred to in this Announcement.
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