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ASX/Media Release 9th May 2007
Pro-Rata Issue and Placement to Raise $5.6m
Alto Energy
International Limited (Alto – ASX:AOI) is pleased to announce a
one-for-four non-renounceable Entitlements Issue and a Placement at $0.05 per
share to raise a total of $5.6 million.
The
non-renounceable Entitlements Issue will be underwritten by Argonaut Capital
Limited and raise $2,315,886 before costs. The Placement of up to 66,000,000
shares to raise $3.3 million will be undertaken as a private placement.
The directors,
who collectively hold approximately 25% of the Company prior to the Placement,
intend to fully subscribe for their entitlements under the Entitlements Issue.
Macquarie Bank, which owns 7.2% of the company, has confirmed that it will
subscribe for a further $800,000 under the Placement, subject to shareholder
approval, and will take up its entitlements under the Entitlements Issue.
Funds raised
from the Entitlements Issue together with the placement will be used by Alto to
pursue its operations in Oklahoma and Louisiana, USA and for general working capital
purposes.
Alto is focusing its operations in the conventional low risk
proven trends of Oklahoma and Louisiana where it is
seeking to build production through exploration success, targeting locations
adjacent to and/or within producing fields close to existing infrastructure.
Alto has
recently drilled three wells, two in Oklahoma
(Reed #4-8 and Pate #5-18) and one in Louisiana
(ConocoPhillips #4). The Reed #4-8 and ConocoPhillips #4 are being completed
for production, while the Pate #5-18 is drilling ahead. Alto expects to drill
up to a further 10 wells during 2007 in both Louisiana
and Oklahoma.
Alto is
currently interpreting 24 sq miles of 3D seismic over its leasehold areas in Oklahoma and expects to
start drilling based on this data within the next three months. At the
Napoleonville Salt Dome, its other main project, the acquisition of 52 sq miles
of 3D seismic continues. The 3D seismic shoot should be completed by the middle
of 2007.
The Placement will
be completed in two tranches; 25,000,000 shares will be issued pursuant to the
Company’s 15% placing limit under ASX Listing Rule 7.1, with the balance
of 41,000,000 shares being issued conditional on shareholders approval at a
General Meeting to be convened as soon as practicable.
An Appendix 3B
for the non-renounceable Entitlements Issue is attached and a disclosure
document and timetable for the Entitlements Issue will be released shortly.
For further information contact:
For more information visit www.altoenergy.com.au
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