22/05/2008 - 10:41

Central Petroleum seeks $6m via rights

22/05/2008 - 10:41

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South Perth-based Central Petroleum Ltd has released details of its $6 million fund raising via a pro rata rights issue to shareholders to address the dilutionary affect of a bond subscription deal with DB Zwirn Mauritius Trading No 3 Ltd.

South Perth-based Central Petroleum Ltd has released details of its $6 million fund raising via a pro rata rights issue to shareholders to address the dilutionary affect of a bond subscription deal with DB Zwirn Mauritius Trading No 3 Ltd.

The funds will be used for oil exploration and development in Australia.

The company also announced today that DBZ would covert 100 bonds to shares for $1 million.

 

Below is two announcements from today:

Following Shareholder approval on 21 December 2007, the Company entered into a Bond Subscription Agreement with D.B Zwirn Mauritius Trading No.3 Limited ("DBZ").

As foreshadowed in the Notice of Meeting and Explanatory Memorandum issued to shareholders on 20 November 2007 (Page 8 "Entitlement Offer"), the issue of Shares to DBZ would have a dilutionary effect on Shareholders.

To address this, at least in part, the Company intended to offer Shareholders the opportunity to participate in a pro rata entitlement offer (or offers) of at least an equal number of Shares as are issued to DBZ on conversion of the Bonds under the Bond Subscription Agreement during a particular approval period.

The maximum number of Shares which may be issued under the Rights Issue is 40,075,746 Shares at an Issue Price of 15 cents per Share to raise $6,011,361 (based on the capital structure of the Company as at the Record Date of 16 May 2008).

The Company intends to apply the funds raised from the Rights Issue to progress petroleum exploration and/or
development in central Australia.

An Offer Document will be mailed to eligible shareholders today, together with personalised Entitlement and Application Forms. A notice under section 708AA(2)(f) of the Corporations Act was lodged with the ASX on 9 May 2008 in respect of the Rights Issue.

 

Below is a second announcement:

Central Petroleum Limited is pleased to announce the conversion of 100 bonds totalling
$1,000,000 into ordinary fully paid shares of Central Petroleum Limited.
As subscriber to the Bond Subscription Agreement approved by shareholders on 21
December 2007, D.B. Zwirn Mauritius Trading No.3 Limited ("DBZ") shall receive
6,666,666 ordinary shares in Central Petroleum Limited, in satisfaction of the conversion of
the above bonds.
To date, the Company has issued 400 bonds to DBZ in return for $4,000,000. Of the total
bonds issued, 400 have now been converted into 26,666,664 fully paid ordinary shares of
the Company, representing 10.8% of issued capital.
As the shares subject to these conversions are actively traded by DBZ, the Company does
not anticipate receiving a substantial shareholding notice from DBZ. As at 21 May 2008,
DBZ held 3,366,666 ordinary shares in Central Petroleum Limited representing 1.6% of
issued capital.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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