Sound Energy: Badile Rig Contract - Payment using Equity
Sound Energy, the African and European focused upstream gas company, announced on 29 November 2016, that the terms of the contract for the use of Pergemine S.p.A ("Pergemine") 3000 HP EMSCO C3 rig for the drilling of the Badile exploration well (the "Rig"), provided that payment of 23% of the service charges due to Pergemine would be settled through the issue of new ordinary shares in the Company ("Ordinary Shares") with a value of approximately Euro 1 million.
Following the mobilisation of the Rig in January 2017, the Company announces that it has [today] issued an initial 830,565 new Ordinary Shares to Pergemine which, at the closing mid-market price per Ordinary Share on 7 February 2017 of 82.0 pence, had a market value of approximately £680,000 (approximately Euro 790,000).
In the event of the Badile exploration well proving successful, further Ordinary Shares will be issued to Pergemine to bring the total market value of the Ordinary Shares issued to Pergemine up to approximately Euro 1 million.
Following the issue of the new Ordinary Shares, the Company will have 672,282,029 Ordinary Shares in issue. Application will be made to the London Stock Exchange plc for the new Ordinary Shares, which will rank pari passu with the Company's existing Ordinary Shares, to be admitted to trading on AIM. Dealings are expected to commence at 8.00 a.m. on 13 February 2017.