Cap Energy Ltd

October 05, 2009 02:00 ET



                                          CAP ENERGY LIMITED
                                       ("Cap" or the "Company")
                                       COMPLETION OF FUNDRAISING
On  3  July  2009,  Cap  announced  that it had it had posted to shareholders  a  circular  containing
information about a proposed fundraising of up to £564,346 through the issue of Convertible  Unsecured
8% Loan Notes ("the Notes").

Cap is pleased to announce that the fundraising has now been completed and that Notes to the value  of
£505,750 will be allotted as follows:

*     £193,400  in  respect of cash subscriptions from shareholders and other investors,  including
      Worship Street Investments Plc ("Worship Street");
*     £25,000 in consideration for the allotment to the Company of 1,000,000 ordinary shares in
      Worship Street;

*     £100,000  to CSV Holdings, Inc ("CSV") in respect of (i) the $100,000 due to CSV pursuant  to
      Cap's acquisition from CSV of interests in the Stark's Dome and Iberia Dome projects in Louisiana,
      USA; and (ii) $60,000 of capital expenditure payments owed to CSV; and
*     £20,000 to satisfy miscellaneous creditors, principally fees owed to Directors of Cap.
An additional £167,000 of Notes will be issued to CSV as the final element of the consideration due to
CSV  for the acquisition of the Louisiana interests. This amount could not be paid in ordinary  shares
in  Cap,  as originally contracted because of the 29.9% limitation on CSV's shareholding in  Cap.  The
Notes  held  by CSV are not capable of conversion if conversion would result in CSV's shareholding  in
the Company exceeding 29.9%.

The  1,000,000  shares in Worship Street allotted to the Company provide it with  the  flexibility  to
raise further cash, if required through a market disposal.

This  fundraising  and the off-setting of other cash liabilities will strengthen Cap's  balance  sheet
through  the  virtual  elimination of short term debt and provide working capital  covering  corporate
overhead and loan interest costs plus planned capital expenditure for the next 12 months.

As an incentive to the Directors, Share Options at an exercise price of 10p, with an expiry date of 31
December  2014  will be issued to: John Killer - 500,000, Tim Hearley - 180,000,  and  Clair  Opsal  -

It  is  anticipated that publication of Cap's Report and Accounts for the year ended 31 December  2008
and its interim results for the six months ended 30 June 2009 will be published shortly, at which time
trading in the Company's ordinary shares on the PLUS-quoted market are expected to re-commence.

An  operational  update  will  be included in the Report and Accounts  and  announced  when  they  are

The Directors of Cap Energy Limited are responsible for the contents of this announcement.

Cap Energy Limited
John Killer
Tel: 07979 903673

St Helens Capital Partners LLP
Mark Anwyl or Duncan Vasey
Tel: 020 7368 6959

Contact Information

  • Cap Energy Ltd