21 August 2009
Circle raises GBP16.5 million in a Secondary Placing
Circle Oil Plc (AIM: COP) has today conditionally placed 61,152,776 new ordinary
shares of EUR0.01 each par value (the "Placing Shares") at a price of 27 pence per
share raising GBP16.5 million for the Company from a number of institutional
investors (the "Placing") through Fox-Davies Capital. It is expected that the
Placing Shares will be admitted to trading on AIM on 27 August 2009.
The proceeds of the Placing will be used by the Company to assist in increasing
gas production in Morocco through the provision of new infrastructure and
additional drilling in 2009/2010, contribute to increasing production in Egypt
through further appraisal and development drilling, complete more geology and
geophysics over its Tunisian land permits and for general working capital
Mr David Hough, CEO of Circle, said:
We are delighted to have completed this Placing and appreciate the support of
all the investors who have contributed. This Placing was not just about raising
money for future development but also about broadening Circle's institutional
shareholder base, which the Board considers to be of importance to a Company
with our growth potential.
"The Placing proceeds will be used to build on this year's highly successful
exploration programme, converting more of the Company's confirmed discoveries
into production revenue. The proceeds will also enable us to fund further
exploration and appraisal/development programmes planned over the next 18
"Circle is well positioned to build on the recent positive drill results and I
look forward to providing shareholders with news of continued good progress."