MDL Medoil

RNS Number:2423Z
MedOil PLC
03 March 2006


FOR IMMEDIATE RELEASE                                              03 MARCH 2006

   NOT FOR RELEASE, PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES,
                           CANADA, AUSTRALIA OR JAPAN
                                        
                                   MedOil plc
                          ("MedOil" or "the Company")
                                        
                         Placing to raise #3.25 million

MedOil plc, the oil and gas exploration company focused on petroliferous basins 
in the Mediterranean and North African regions, today announces that Arden 
Partners Limited ("Arden") have conditionally placed 18,055,556 new ordinary
shares (the "Placing Shares") in MedOil with institutional and other investors 
to raise approximately #3.25 million (before expenses). It has also issued its 
unaudited results for the initial trading period ended 30 September 2005.

Background
MedOil floated on the AIM market of the London Stock Exchange in January 2005.
Prior to admission the Company had raised #1.2 million and the Company's stated 
intention was to develop a successful natural resources exploration and 
development business.

Since the AIM admission the Company has been awarded a prospecting permit in
offshore Tunisia (Louza Block) and has entered into an exploration study
agreement permit in Malta covering Area 3 Blocks 2&3.

The Louza Block contains one existing oil discovery, M'Sela which was discovered
by Union Texas Inc in 1995 and, according to Merlin Energy Resources Limited,
the Company's technical consultant, four drillable oil prospects in close
proximity that could potentially be developed as satellites to M'Sela, in the
event that the Company can take the M'Sela discovery to production. The Company
intends to develop the Louza Block by conducting a 3D seismic survey in the near
future, details of which were outlined in the trading update on 7 February 2006.

Reasons for the Placing
The proceeds of the placing will be used as follows:

   * In Tunisia, the Company intends to carry out a 3D seismic survey at a
    cost to MedOil of up to #2 million. This survey is expected to cover
    approximately 600 sq kilometres. The Directors believe that this survey
    should assist in identifying the optimum location for an appraisal well on
    the M'Sela oil accumulation as well as identifying the optimum location for
    a planned exploration well location on one of the four additional prospects
    identified by the Company and confirmed by Merlin Energy Resources Limited
    at M'Sela West 1, M'Sela West 2, M'Aila East and Ourata;
   * In Malta, the Company intends to conduct a limited but focussed 2D
    seismic programme in order to seek to enhance the value of the asset at a
    cost to MedOil of #0.5 million; and

   * The balance of the proceeds of the placing are required for the general
    working capital needs of the Company and for future projects. This includes
    continuing the strategy of seeking to acquire further assets in the
    Mediterranean area and the Company is currently evaluating a number of
    potential projects, including possible projects in the Po Valley in Italy
    and offshore Albania, some of which the Directors believe will become
    available in 2006. In addition, the Company has recently applied for new
    exploration licences in offshore Sicily, blocks number d349C.R-.MD and
    d350C.R-.MD which were gazetted on 1 February 2006 by the Italian
    government. This application may or may not lead to a licence being granted
    to the Company in due course.

Preliminary results for the period ended 30 September 2005
The results show a loss of #256,000 for the period to 30 September 2005. This
reflects the expenses incurred in pursuing and securing the permit and
exploration study agreement in Tunisia and Malta respectively as well as other
opportunities. The cash balances at 30 September 2005 were #930,000 reflecting
the net loss for the period. No dividend will be proposed for the period.

Details of the Placing
The Company has today entered into a conditional placing agreement with Arden
Partners Limited ("Arden"), under which Arden has agreed to use its reasonable
endeavours to procure placees for 18,055,556 new Ordinary Shares ("Placing
Shares") at a price of 18p per share ("Placing Price"). The Placing Price
represents a discount of 12.2 per cent. to the official closing market price of
20.5p of an existing Ordinary Share on 2 March 2006, being the latest 
practicable date prior to the release of this announcement. The Placing Shares 
will represent 33.4 per cent. of the Company's issued share capital immediately
following completion of the Placing. The Placing is conditional, inter alia, on
Admission of the Placing Shares on or before Friday 10 March 2006.

The Placing Shares have been offered to certain institutional and other
investors (each a "Placee" and such offer a "Placing Participation") subject to
the terms and conditions set out in this announcement.

Settlement and dealings
Application will be made to the London Stock Exchange for the Placing Shares to
be admitted to trading on AIM ("Admission"). It is expected that Admission will
occur, and dealings in the Placing Shares begin, at 8.00a.m. on Friday 10 March
2006. The Placing Shares will, when issued, rank pari passu in all respects with
the existing Ordinary Shares in issue, including the right to receive any
dividends and other distributions declared following Admission.

Commenting on the Placing, David Thomas, Chief Executive Officer, said: "This
fundraising represents an important step in the Company's development bringing a
number of institutions onto the Company's share register. The funds raised will
enable the Company to enhance its assets in Tunisia and Malta which is the
immediate focus of the Directors. It will also allow the investigation and
development of other areas of interest for the future."
                                   
                                    ---ENDS---

ENQUIRIES:

MedOil plc                                                    Tel: 0207 921 0001
David Thomas, Chief Executive Officer

Bishopsgate Communications Limited                            Tel: 020 7430 1600
Maxine Barnes
Nick Rome

Arden Partners Limited                                        Tel: 020 7398 1630
Christopher Hardie




                      This information is provided by RNS
            The company news service from the London Stock Exchange

END
IOEKGGGFNZZGVZM

Grafico Azioni Medoil (LSE:MDL)
Storico
Da Mag 2024 a Giu 2024

Grafico Azioni Medoil (LSE:MDL)
Storico
Da Giu 2023 a Giu 2024