Sound Oil to carry out private placement

By Peni Pedriawan

UK-based oil and gas company Sound Oil Plc has agreed on a private placement through Astin Capital Management Limited and intends to make an open offer to existing shareholders.

Following the announcement of the encouraging results at the Jatayu well, the new funds will be used to fund continuing operations, including probable testing and two other wells at Citarum and for other operations.

The placement involves the company issuing 774,341,464 new ordinary shares of 0.1 pence each immediately in exchange for 7,143,300 redeemable subscription notes at a par value of ?1 per note.

Whilst the precise amount raised will depend on future share price trends, the placement would raise approximately six million pounds (after fees and transaction costs which reflect the warrant cancellation) should the share price remain constant.

Editing by Dadan Wijaksana