Investment in Oyster Oil and Gas

RNS Number : 1488U

Gunsynd PLC

13 January 2017

 

Gunsynd plc ("Gunsynd" or the "Company")

Investment in Oyster Oil and Gas

Gunsynd Plc (AIM: GUN, NEX: GUN) is pleased to announce that it has signed a subscription agreement with Oyster Oil & Gas ("Oyster"), a junior oil and gas E&P company quoted on the Toronto Venture Exchange in Canada to invest £125,000 by as part of a wider fundraising with existing investors of £250,000.

Highlights:

Oyster is listed on the TSV Venture Exchange (TSX-V: OY) and is an international energy group focused on oil and gas exploration and production activities in underexplored hydrocarbon basins. Oyster currently operates 4 blocks in the Republic of Djibouti (100% interest); 3 blocks are located onshore and 1 block offshore, and also the sole interest holder in 1 onshore block in the Republic of Madagascar.

Terms of the investment:

Gunsynd is investing CAD 200,000 (approximately £125,000) at a price of CAD 0.20 (compared with closing price of 0.24 on 11 January) for 1,000,000 shares in Oyster.  The Company will also receive a warrant over an equivalent number of shares at a strike price of CAD 0.27 exercisable up to 20 January 2018.

Hamish Harris, the Company's Executive Chairman, commented:

"This initial investment into Oyster offers the Company the opportunity to participate in a large, multi-billion barrel prospective resource at what we believe to be a compelling valuation and complements our portfolio of near term oil production companies".

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014.

The directors of Gunsynd accept responsibility for this announcement.

For further information please contact:

Gunsynd plc:

[phone]

Hamish Harris

Nominated Adviser/NEX Exchange Corporate Adviser

[phone]

Cairn Financial Advisers LLP

James Caithie / Liam Murray

Peterhouse Corporate Finance (Joint Broker)

[phone]

Lucy Williams

 

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