Oil and gas company Silvermere Energy has raised £150,000 from a placing and the exercise of warrants.
The placing with two existing shareholders raised £75,000 at 16p a share and was undertaken because the sellers of Silvermere’s Mustang oil and gas asset did not exercise their warrants even though they had irrevocably agreed to. The other warrant were exercised at 30p each. The previous share placing at the time of the reversal of the US exploration assets raised £1.5m at 25p a share.
Chief executive Andy Morrison has reinvested £9,600 of his salary into the company’s shares by exercising 32,000 warrants at 30p a share. That takes his stake to 0.88%.
RPS Energy values the proven and probable reserves that US-focused Silvermere owns an interest in at £18.4m – 100.2p a share. Joint broker Old Park Lane is more cautious and assumes flat oil and gas prices. On that basis the NPV is £14.7m.
The I-1 well should be drilled and in production before the end of 2011 and Silvermere is in discussions with the operator of the licences about a three well programme next year. Final decisions will be made after the results of the I-1 well are known.
At 21.38p a share, Silvermere is valued at £3.92m.
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