Today the company issued the following announcement prior to drilling their Overston 2 well - spud 23 February - with 137bcf gas.
See announcement below...
It seems to me that the implication is that the options have been underwritten to a value of 20c...and given that they are currently trading at 12c...can we assume that the success of Overston 2 is a foregone conclusion...why else would the underwriters agree to an exercise price of 20 cents and expiry date of the 30 June 2004????
UNDERWRITING AGREEMENT - CLASS B (2004) OPTIONS 13 February 2004 The Directors are pleased to announce that the Company has entered into Heads of Agreements with Bell Potter Securities Limited and WHI Securities Pty Ltd to underwrite 25,000,000 Class B (2004) Options with an exercise price of 20 cents per option and expiry date of the 30 June 2004. The agreements are subject to the successful negotiation of a formal Underwriting Agreement.
The Company has received irrevocable undertakings that the balance of the 30 June 2004 Options, will be converted into fully paid shares in SHG by the 15 June 2004.
A total of $5.8 million will be raised by the conversion of the Class B (2004) Options which will provide additional financial security for the Company going forward.
Chris Blamey Company Secretary Phone 02-9955 2320
SHG Price at posting:
0.0¢ Sentiment: ST Buy Disclosure: Held
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