Further Loan to Core Oil & Ga

RNS Number : 8218A

Chalkwell Investments PLC

07 February 2011

 



7 February 2011

Chalkwell Investments plc.

("Chalkwell" or the "Company")

Further Loan to Core Oil & Gas Inc. ("Core")

Chalkwell, the AIM-quoted investment company, with a focus on the resource sector, announces that it has agreed to make an unsecured loan of £300,000 to Core ("Loan").  This will be funded out of the proceeds of the subscription which raised £1m, as announced on 26 January 2011.

This is in addition to a loan of £500,000 made to Core by Chalkwell, which was announced on 1 November 2010.  Core has a 33.3% working interest and a 29.13% net revenue interest in respect of Mustang Island in Kleburg County, Texas ("Mustang Interest"). Core used this unsecured loan to pay the first tranche ($133,000) of a total consideration of US$1,333,000 to Seadrift Management, LLC and WellMaster Exploration & Production Co., LLC (the "Vendors") in respect of the Mustang Interest, to provide payment for a detailed reserve review of Core's oil and gas reserves by RPS Energy and general working capital purposes.  Core is using the £300,000 to fund operations in respect of Mustang Island with respect to the Mustang Interest.

The Company has agreed outline terms to acquire Core in an all share deal, which would be classified as a reverse takeover of Chalkwell under the AIM Rules, further details of which are set out in the Company's announcement dated 26 January 2011.

Executive Chairman Bruce Evers commented: "We are delighted to provide further support to Core. We remain in advanced discussions with regard to a proposed reverse takeover and look forward to updating the market further in due course."

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For further information please contact:

Chalkwell Investments plc Bruce Evers, Executive Chairman	[phone]
Merchant Securities Limited (Nominated Adviser and Broker) Lindsay Mair/Virginia Bull	+ 44(0)20 7628 2200
Bishopsgate Communications Nick Rome/Michael Kinirons	[phone]

 

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