Widespread Energy raises $198,200 in private placement

 

28 January 2010

NZX Market Announcement

Widespread Energy Raises $198,200 in Private Placement to Fund Kotuku Exploration Bore

The Board of WEN is pleased to advise that it has today placed 1,651,667 new shares to qualified investors to raise $198,200 in new capital.  These shares were placed at the current market price of WEN shares, being $0.12 per share.

 

As advised in the WEN market announcement of 15 January 2010, WEN is planning to drill a stratigraphic bore near the Kotuku oil seeps in its 100% held petroleum exploration permit (PEP 38560). The capital raised from this placement will be used to finance this work.

 

Particulars of the placement under NZAX Listing Rule 7.11.1 are set out below.

 

In addition, the investors in the placement have agreed to subscribe for a further 1,651,667 shares should Crown Minerals grant to WEN a prospecting license over the Chatham Rise in the next twelve months. The issue price for such placement will be determined at a future date with reference to the market price of WEN shares at that time. It is likely that WEN will also undertake an offer to all existing shareholders at or around such time to give the opportunity to all shareholders to participate.

 

For and on behalf of the Board

Widespread Energy Limited

 

 

Chris Castle

Director

chris@widespread.co.nz

 

Particulars of Allotment:

 

Class of security:

Ordinary Shares

ISIN:

NZWENE0003S0

Number issued:

1,651,667

Issue price:

$0.12 per share

Payment in cash:

Yes

Fully paid:

Yes

Percentage of class:

9.75%

Purpose of the issue:

Funds raised will be applied towards financing the drilling of a stratigraphic bore near the Kotuku oil seeps in the Company’s 100% held petroleum exploration permit (PEP 38560)

Authority for the issue:

Directors Certificate

Date of issue:

28 January 2010

Total number of securities on issue following allotments:

18,585,443 ordinary shares

 

NTA 49¢

Key stats as at 6 September

Security

Number on issue

Market price (cents)

Market Value ($M)

Net assets ($M)

Ordinary shares

23,490,449

14.1

3.312

11.4*

Market value discount    (ords only)    71.1%  

Listed warrants

8,505,123

1.5

0.126

 

* Our ASN shareholding is now held for NTA disclosure purposes at a valuation of CAD 2.154 million based on our share of net assetsNTA per WID share valuing ASN at the current spot market price is 44.0 cents.

 

 

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