New Lock-in Agreements

RNS Number : 6823W

Silvermere Energy PLC

02 February 2012

 



2 February 2012

Silvermere Energy PLC

("Silvermere" or "the Company")

New Lock-in Agreements

The Company's admission document dated 2 August 2011 noted that t1ps Investment Management (IOM) Limited ("t1ps IOM") and its associated parties were interested in 2,768,676 ordinary shares in the Company (being 16.3 per cent. of its issued share capital) and 1,483,200  placing warrants (as defined) and that t1ps IOM had agreed, pursuant to Rule 7 of the AIM Rules ("Rule 7"), not to dispose of such interests for twelve months from admission and for a further twelve months to deal only through the Company's brokers (subject to being offered comparable terms).  The entity that signed the lock-in agreement was t1ps Investment Management Limited, which is in the same group as t1ps IOM.

t1ps Investment Management Limited ("t1ps") is the discretionary fund manager of SF t1ps Smaller Companies Growth Fund ("SCGF") and Elite t1ps Income & Growth Fund ("Elite"). Both SCGF and Elite have increased their holdings since admission and now together own 3,911,476 ordinary shares (19.13 per cent.) of the current issued share capital of the Company. Of this combined total, SCGF owns 11.9 per cent and Elite owns 7.23 per cent. Both SCGF and Elite are authorised persons as defined in the AIM Rules.

The Company has agreed with t1ps that the entities to be locked in should be SCGF and Elite rather than t1ps IOM.  Accordingly, the Company has agreed to release t1ps from its lock-in and instead to enter into new lock-in agreements with each of SCGF and Elite in terms identical to those with t1ps IOM other than the fact that it they are not governed by Rule 7.

Due to the size of the shareholding of SCGF, the lock-in entered into by SCGF constitutes a related party transaction as defined by the AIM Rules. The directors of the Company, having consulted with Merchant Securities Limited, the Company's nominated adviser, consider that the terms of the lock in are fair and reasonable insofar as Shareholders are concerned.

-ENDS-

For further information please contact: Silvermere Energy PLC Andy Morrison, Chief Executive	[phone]
Merchant Securities Limited (Nominated Adviser and Broker) Lindsay Mair/Virginia Bull Rivington Street Corporate Finance Limited Jon Levinson	+ 44(0)20 7628 2200  [phone]
Bishopgate Communications Nick Rome/Shabnam Bashir	[phone]

About Silvermere Energy PLC

The Company acquired its interest in the Mustang Asset on 30 August 2011.  This comprises a 33.33 per cent. working interest and 20.83 per cent. net entitlement interest in the Mustang Licence Area, an area within the southern half of the north west quarter and northern half of the south west quarter of the Block 818-L field as defined in State of Texas Oil and Gas Lease numbers 108873 and 108874. The Mustang Island 818-L field, located in Kleberg County waters of the Gulf of Mexico, is a field re-habilitation project targeting bypassed or only partially produced gas-condensate.

Early in 2011 the Hercules Offshore 205 jack-up rig was contracted to re-enter the I-1 Well on the Mustang Licence Area which was considered to be the most likely of the historic well sites to provide 14 optimum re-entry conditions. The I-1Well re-entry and side-tracking operation was completed in March 2011 leaving it ready to complete in sand horizons I-1 to I-6. Production and flow testing was carried out during June 2011. The well re-entry programme was led by Dominion as the operator. Gas and oil produced from the I-1Well is proposed to be connected to pipeline infrastructure and tied in via a subsea assembly, constructed for the purpose and then transported to the Six Pigs gas facility.

Silvermere's strategy is to acquire a portfolio of US oil and gas licence interests onshore and in shallow offshore waters, characterised by relatively low risk and low cost with the potential for near term production.

Silvermere is quoted on the AIM Market of the London Stock Exchange plc (AIM: SLME) with its offices in London.

 

END

 

 

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