ASX Announcement
Farmout negotiations for TP15 and EP413 at an advanced stage.
Share Purchase Plan to raise up to $4,580,773 by issue of up to 176,183,575 shares at an issue price of $0.026 per share, representing a discount of 9.1% to the average market price of Norwest’s share price over the last 5 days, to fund UK and Australian exploration activities including interim bridging funding of TP15 and EP 413 pending completion of farmout Farmout Norwest Energy NL (“Norwest” or the "Company") advises that negotiations are at an advanced stage with a large offshore corporation with refinery and distribution operations and international exploration activities, for that entity to farm in to TP15 and EP413.
Norwest has been advised that the proposed farminee is finalizing its internal approval processes and it is expected that the transaction will be formalised in coming weeks, should those processes approve the transaction. If the transaction proceeds the proposed farminee will be providing funding towards the drilling of the proposed TP15 well, known as Red Hill South and the EP413 shale gas project to earn equity in each of those permits.
Full details of the party and the terms of the transaction will be provided once the transaction has been concluded. Share Purchase Plan ( SPP ) Norwest is also pleased to announce that it is proposes to raise up to $4.5m from the issue of up to 176m shares at the issue price of $0.026 per share pursuant to Norwest’s Share Purchase Plan detailed below.
These funds will be applied to UK and other Australian exploration activities, operating overheads and to provide interim bridging funding of TP15 and EP413 activities whilst the farmout of those projects is formalized. Any funds outlaid by Norwest during this bridging period will be recovered from the prospective farminee assuming the transaction proceeds. Norwest directors will subscribe for their entitlements to the issue and they encourage shareholders to also subscribe.
The SPP will enable all shareholders, irrespective of the number of shares held in the Company, the opportunity to purchase shares. The Offer is an invitation to offer to subscribe for fully paid ordinary Shares in the Company (Shares) at 2.6 cents per Share for either of the following: 192,308 shares at 2.6 cents costing $5,000.00 384,615 shares at 2.6 cents costing $10,000.00 576,923 shares at 2.6 cents costing $15,000.00 You may refuse the Offer.
The Offer is not renounceable, so there are no tradeable rights (i.e. you may not transfer your right to acquire a Share to anyone else). The Offer to each eligible Shareholder is made on the same terms and conditions.
at an issue price of 2.6 cents per share (subject to rounding) representing a discount of approximately 9.1% to the current market price; and
free from brokerage, commission and stamp duty.
It will also provide an opportunity for shareholders with small shareholdings to increase those holdings into more meaningful and financially viable parcels.
The right to participate in the offer of Norwest shares under the SPP is available exclusively to persons who were registered as holders of fully paid ordinary shares in the Company at 5.00pm (Western Standard Time “WST “) on 27 July 2010 and whose registered address is in Australia or in any other jurisdiction in which it is lawful for the Company to offer shares under the SPP. The offer is nonrenounceable. The price for each share issued under the SPP will be 2.6 cents per share (subject to rounding as set out in the terms and conditions) which represents a discount of 9.1%of the average market price for those securities calculated over the last 5 days on which sales in those securities were recorded.
The last closing sale price of Norwest shares on the trading immediately prior to the date of this announcement was 2.9 cents per share. Key dates and further information The timetable for the issue of shares pursuant to the SPP is: Record date to determine entitlements 5.00pm WST 27 July 2010 Closing date for applications from Shareholders 5.00pm WST 20 August 2010 This offer will raise a maximum of $4,580,773. In the event that the value of applications at closing exceed $4,580,773 then each application will be reduced proportionately and the resultant refund will be sent to the shareholder within 5 business days of closing.
Shares to be issued under the SPP will be allotted within 3 business days of the offer closing. The Company will apply to the ASX for the shares issued pursuant to the SPP to be admitted to quotation. The offer document, application form and Terms and Conditions will be forwarded to Shareholders within the next five business days. The shares issued under the SPP may be subject to a subsequent offer for sale. The Company relies on Section 708A of the Corporations Act 2001 in relation to the initial sale.
In accordance with Section 708A (6), the Company notifies the ASX that: (a) the securities will be issued without disclosure to investors under Part 6D.2; (b) this notice is given under paragraph 708A (5)(e); and (c) the Company has complied with Chapter 2M and section 674, of the Corporations Act 2001. There is no excluded information available for the purposes of Sections 708A (7) and (8) of the Corporations Act 2001. For and on behalf of Norwest Energy NL E A Myers Company Secretary For further information: please contact Peter Munachen or Ernie Myers on 08-9227 3240, or email info@norwestenergy.com.au. Media and Investor Enquiries: please contact Fortbridge on +612 9331 0655 or Steve Rotherham on o421 488 320.