10 November 2011
Sound Oil plc
("Sound Oil" or "the Company")
Drawdown on Equity Line
Sound Oil announces that it has drawn down on its Standby Equity Distribution Agreement ("SEDA") with YA Global Master SPV Ltd ("Yorkville") in the amount of £350,000. This draw down has been undertaken at a price of 2.6p per share and will result in the issue of 13,461,538 ordinary shares of 0.1p each in the Company ("the New Ordinary Shares") to Yorkville.
The proceeds of the draw down will be applied to the funding of Sound Oil's combined work programme and ongoing costs of the Company and its subsidiaries.
Application will be made for the New Ordinary Shares to be admitted to AIM and dealings are expected to commence on 17 November 2011. The New Ordinary Shares will rank pari passu with the Company's existing issued ordinary shares.
For further information please contact:
Gerry Orbell, Chairman and Chief Executive
James Parsons, Chief Financial Officer
Tel: 44 (0)1372 365745
Smith & Williamson - Nominated Adviser
Tel: 44 (0)20 7131 4000
Investec - Broker
Tel: 44 (0)20 7597 4000
Buchanan - Financial PR
Tel: 44 (0)20 7466 5000