24 January 2013
Sound Oil plc
("Sound Oil" or "the Company")
Completion of Existing Placement and advancement of Open Offer
Sound Oil, the Italian focused upstream oil and gas company, has today received confirmation that Manxdale Holdings Limited ("Manxdale") has agreed a sale of shares in the Company to Henderson Global Investors in a block trade. After this trade Manxdale will no longer have a disclosable shareholding in the Company.
This transaction closes the placement announced in July 2012 under which the Company has raised a total of £5.63 million (before expenses) at an overall aggregate average price of 8.073 pence per share (adjusted for the recent share consolidation). The Company's cash balance following receipt of the final placement instalment from Manxdale will stand at approximately £8.5 million (US$13.7 million), with no debt.
The Company had previously announced that an open offer would be made at the end of the placement to enable existing shareholders to purchase shares at the average price of the entire placement period, thereby enabling existing shareholders to benefit from similar terms to Manxdale. The Company will therefore make such an open offer to shareholders in the near term; the offer will be proportional to individual holdings, will be capped at a total of £1 million and will be offered at 8.073p per share.
James Parsons, Sound Oil's Chief Executive Officer commented:
"This placement of the remaining Manxdale shares removes the current overhang from our stock. I believe this is well timed as we approach the drilling of the Nervesa appraisal well.
It is very encouraging that Henderson have taken a position in Sound Oil. We will continue to actively market the Company to potential new shareholders and other institutional investors.
Despite the Company's already strong funding position, I am pleased to honour the open offer, which was announced last summer and is a long-standing commitment to our loyal shareholders."
For further information please contact:
James Parsons, Chief Executive Officer
Smith & Williamson - Nominated Adviser
Tel: 44 (0)20 7131 4000
Westhouse Securities - Broker
Tel: 44 (0)20 7601 6100
Buchanan - Financial PR
Tel: 44 (0)20 7466 5000