AED Oil Ltd has amended the terms of a previously announced 9% convertible note issue to reflect two new put dates, July 10, 2011 and January 10, 2012, and a 10% ex-gratia reduction to the exercise price to 55c.
The changes were made ahead of significant corporate developments expected by the company over the next few months, including the start of Brunei Lempuyang 1 testing in mid January 2011, followed by the testing of Lukut 1.
Executive chairman David Dix says the introduction of new redemption dates and the ex-gratia reduction of the exercise price are in the best interests of noteholders and the company. "This step forms part of the company’s capital management program and should incentivise noteholders to continue their relationship with AED, by allowing them to participate in any upside of AED’s exciting operational developments in early 2011, while increasing funding security for AED," Mr Dix said.
The results of AED’s request to extend the expiry date for the Rombebai PSC from November 2011 until November 2014 are also expected to be known shortly. "If extended, the licence would allow AED to recommence farm-out discussions with interested parties and move to the operations phase," he said.
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