Oil & Gas Corporate News
Max Petroleum (LON:MXP) (BUY, 50p) (MXP, 16.75p, ? (2.9%)) plc announced today that pursuant to a warrant deed to subscribe for ordinary shares of 0.01p each in the Company dated 10 November 2009, Macquarie Bank Limited exercised a right to subscribe for 133,971,947 Shares at an exercise price of 4.538p per share. Proceeds from the exercise of US$9.8m have been used to pay down the principal amount outstanding under the Company's revolving credit facility with Macquarie Bank. Following the exercise, the total loan commitment under the Credit Facility is US$68.5m of which US$6.0m is currently outstanding, leaving US$62.5m in borrowing capacity under the Credit Facility. The cash exercise was completed in conjunction with Max Petroleum's recent equity placing where the Company raised approximately US$85m before expenses. Macquarie Bank has also cancelled a warrant for 182,639,369 Shares at an exercise price of 6.13p per share and has extended the maturity date of the Credit Facility to 31 March 2013 as a result of the placing. Application has been made for these shares to be admitted to trading on AIM on 15 March 2011.
Comment: In-line with balance sheet restructuring voted at recent EGM. A busy Newsflow in the coming months should provide catalysts for significant share price appreciation on a risked basis.
San Leon Energy (LON:SLE) plc (BUY, 65p) (SLE, 37.7p, ? (3.2%)) announced that the Irish government has granted formal approval for the transfer of the OMV (Ireland) Killala Exploration GmbH interest in Irish Continental Shelf Petroleum Exploration Licence No: 3/05, the Rockall Licence, to San Leon. An Addendum to the Rockall Licence was executed between San Leon, OMV and the Irish government. OMV has paid the Company $3m cash and assigned its 50% beneficial interest to San Leon, thereby giving the Company a 100% interest in the licence, effective immediately. San Leon is currently engaged in a farm out process relating to its Irish Atlantic Margin assets with significant equity being made available on all licenses, including the Rockall Licence which comprises the Killala and Kingfisher prospects.
Comment: Follows on from previous announcement of the agreement between San Leon and OMV a few weeks ago.
Northern Petroleum (LON:NOP) plc (NOP, 135.5p, ? (0.4%)) announced that operations have commenced on drilling the Zaedyus prospect, with well…
