Perth headquartered oil and gas producer Amadeus Energy Ltd intends to undertake an on-market buy-back of up to 5 per cent of the current issued capital (approximately 9.25 million shares) for a maximum of 12 months from 4th July 2006.
Perth headquartered oil and gas producer Amadeus Energy Ltd intends to undertake an on-market buy-back of up to 5 per cent of the current issued capital (approximately 9.25 million shares) for a maximum of 12 months from 4th July 2006.
Based on the price of the company's ordinary shares on the ASX on 16th June 2006 of $1.11, a buy-back of 9.25 million shares at this price would cost Amadeus approximately $10.3 million.
The board said it was focused on maximising returns to shareholders with the introduction of an on-market share buy back which was in line with this aim as it would add value to the remaining shares on issue.
Amadeus currently has debt outstanding of $100 million and cash reserves of $17 million. The buy-back will be funded using these cash reserves.
Amadeus directors Geoffrey Towner, Caroline Bentley and Robert Scott hold shares in Amadeus and all three directors hold options in the company.
Shaw Stockbroking Limited will act on the Company's behalf in relation to the buy back.
At market close, shares in Amadeus were down 3 cents to $1.09.
Below is the full announcement:
RE: ON MARKET SHARE BUY-BACK
The Directors of Amadeus Energy Limited ("Amadeus or Company") announce its intention to undertake an on-market buy-back of ordinary shares of its issued capital under section 257F of the Corporations Act 2001 and as per ASX Listing Rule 7.29 and 7.33 and in accordance with Section 1002G of the Corporations Act 2001 .
The Company intends to buy back up to 5% of the current issued capital (approximately 9.25 million shares) for a maximum of 12 months, following the announcement to start the buy-back, expected to be the 4 July 2006.
The Board is focused on maximising returns to shareholders and this will from time to time involve capital management. The Board views the introduction of an on-market share buy back as being in line with this aim as it will add value to the remaining shares on issue.
Amadeus currently has debt outstanding of $US74 million and cash reserves of $A17 million. The buy-back will be funded using these cash reserves. The Board does not consider the buy-back will adversely impact the financing of current drilling activities nor preclude Amadeus from taking advantage of acquisition opportunities in the USA, should they arise.
Based on the price of the Company's ordinary shares on the ASX on 16th June 2006 of $1.11, a buy-back of 9.25 million shares at this price would cost the Company approximately $A10.3 million.
The Company is not in possession of any inside information it considers to be a breach of insider trading provisions.
Amadeus Directors Geoffrey Towner, Caroline Bentley and Robert Scott hold shares in Amadeus and all three directors hold options in the Company. The buying-back and subsequent cancelling of shares in the Company will increase their percentage holdings in the Company according to the number of shares cancelled. Details of Directors interests are available from the ASX and Company's websites.
Shaw Stockbroking Limited will act on the Company's behalf in relation to the buy back.
Yours faithfully,
CAROLINE L BENTLEY
Company Secretary / Executive Director
