OilVoice - Monitor Energy Announces Placement and Option over Onshore Trinidad Production

Monitor Energy Announces Placement and Option over Onshore Trinidad Production

Tuesday, July 13, 2010

Key points:
• Monitor raises A$1.4M via a Placement to sophisticated investors,
• Monitor is finalising exclusive negotiations regarding the acquisition of an interest in onshore Trinidad production

Australian oil and gas company Monitor Energy Limited has completed a Placement under section 708 of the Corporations Act 2001 to raise A$1.41 million (before costs).

Contemperaneously with the Placement, Monitor has entered into exclusive negotiations to acquire, through SOCA Petroleum, an interest in three subsidiaries, including a drilling company and two exploration and production companies operating in Trinidad, in which fellow ASX company, Range Resources, has entered into a Heads of Agreement to acquire a 10% interest. Monitor intends to conclude final terms and due diligence on or before 31 July 2010.

The funds raised under the Placement will be utilised to assist the Company in its current exclusive negotiations regarding Trinidad and fund the Company's existing projects and general working capital requirements. The Placement, managed by Komodo Capital Pty Ltd ('Komodo'), is for 470,000,000 shares in the Company at A$0.003 per share. Komodo, along with UK based, Wentworth Capital Management, will also assist with any associated raising on conclusion of the Trinidad negotiations.