Circle Oil Plc, the international oil and gas exploration and development company, is pleased to announce that the Company has successfully raised £33 million by way of a placing of 173,684,211 new ordinary shares (the “New Shares”) at a price of 19 each.
The principal participants in the placement are Libya Oil Holdings Ltd, a wholly owned subsidiary of Libya Africa Investment Portfolio, who invested £19 million (representing a 29.66% interest in Circle) and Kaupthing Bank HF of Iceland who invested £10 million (representing a 15.61% interest in Circle).
Circle and Libya Oil Holdings have further agreed to seek opportunities to work together on projects in Circle’s present areas of interest.
These funds will be used to cover the cost of Circle’s aggressive exploration programme in Morocco, Tunisia and Egypt. Circle plans to drill up to 15 wells between now and the end of 2009 and will also conduct a large 3D seismic study on Block 49 in Oman. Circle and its partners currently have three drilling rigs under contract to carry out the planned drilling programme.
The New Shares will be admitted to trading on AIM at 08.00 on Wednesday 10 September 2009. Following admittance of the New Shares, Circle will have 337,131,411 ordinary shares in issue.
David Hough, CEO of Circle, said:
“I am absolutely delighted that Circle has been able to raise such significant new investment in the Company, particularly from investors of this calibre, in what remain very tough financial market conditions. Shareholders can rightly regard this success as a real endorsement of Circle’s strategy and future prospects. We have ahead of us much to be excited over, beginning on 15 September with Circle’s first production revenues, and over the next year, with an aggressive exploration drilling programme. I look forward to updating shareholders on our progress.”