StockMarketWire.com - Sound Energy's [LON:SOU] was one of the sector's biggest fallers after it inked a heads of terms whereby Greenberry Plc and other investors will subscribe for bonds to be issued by the company to provide additional funding for its growth strategy, and also simplifying its corporate debt structure.

The bonds will involve the Bond Subscribers acquiring, subject to contract, privately placed 5 year non-amortising bonds with an aggregate par value of at least Euro 28.8 million and a 5% coupon (the "Bonds").

The Bonds will be issued at a 32% discount to par, will attract a total cash fee of Euro 1.1 Million (3.8% of par value) and will be secured upon the shares of the Company's subsidiary that holds its Italian assets, Sound Energy Holdings Italy Limited.

Alongside the Bonds, and as part of the debt package, the Company also intends to issue Greenberry with an aggregate total of 70,312,500 warrants to subscribe for new ordinary shares in the Company, issued pro rata alongside the Bonds, at an exercise price of 30 pence per ordinary share and with an exercise period of approximately 5 years from the date of issue, concurrent with the term of the Bonds.

The issue of 3,335,214 of the warrants will require shareholder approval.

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Xtract Resources [LON:XTR] has drawn down USD2.4m from its existing facility with YA Global Master SPV, Ltd. The money would primarily be used to fund completion of the Manica Bankable Feasibility Study.

The funds will be drawn down in two tranches. The first tranche of USD1.65m would be drawn on May 10, with a second tranche of USD0.75m drawn on July 1.

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Nostra Terra Oil and Gas [LON:NTOG] has noted an announcement today by Independent Resources, entitled 'Creditor and Cost Reductions & Financial Update' which includes a section on the East Ghazalat joint venture.

Independent Resources' announcement said: "Independent Resources Egypt Ltd is the company's joint venture vehicle with Nostra Terra Oil and Gas Company plc, which owns a 50% interest in the East Ghazalat concession.

"IRE continues to make progress on the registration process with the Egyptian Government. This will allow it to receive its share of the East Ghazalat revenues from 1 July 2015.

"As announced on 25 January 2016, IRE remains in dispute with North Petroleum International SA the operator of East Ghazalat. IRE remains entitled to its share of revenues notwithstanding the dispute and expects the formalities with the Egyptian authorities to allow it to receive those revenues to be completed within approximately two months.

"IRE will receive directly from Egyptian General Petroleum Corporation its shares of revenue from East Ghazalat. IRG will make a further announcement on completion of those formalities.

"As part of the terms of the acquisition of East Ghazalat as announced on 15 October 2015, IRE issued a US$2.5m loan note to TransGlobe Petroleum International Inc, the vendor of East Ghazalat, repayable by 30 September 2017. IRG is jointly and severally liable with NTOG for the loan note.

"The amount to be repaid to TransGlobe pursuant to the terms of the loan note is subject to adjustment to reflect East Ghazalat's working capital position on 30 June 2015, together with the net cash flow attributable to the assets from 30 June 2015 until the 14 October 2015, the date of completion of the acquisition. The scale of the adjustment has not yet been agreed."

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Aminex [LON:AEX] has granted 139.25 million options to its directors and staff. The total number of options now in issue is 156.775 million, representing approximately 8.7% of the company's issued share capital.

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Bankers Petroleum's [LON:BNK] proposed takeover by Geo-Jade has been approved by the Albanian Competition Authority, the Chinese National Development and Reform Commission (NDRC) and the Ministry of Commerce of the People's Republic of China (MOFCOM) through the Shanghai Free Trade Zone Management Committee.

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Northern Petroleum [LON:NOP] said its operations team in Canada and London has done well to more than double production in the last three months, with production from the 9-25 battery yet to be added.

"This has provided a production base which gives valuable net cashflow for the group," said CEO Keith Bush in a statement.

"Additional production above the current level comes at very low incremental cost and is a key focus once the current work programme is completed.

"The Company has substantial owned infrastructure which can process much higher volumes of production with a limited increase in fixed operating costs. Building production from here will create an asset with very attractive net cashflow and value, even at current oil prices."

HIGHLIGHTS:

- net average oil production from 1 April up to and including 18 April was 449 barrels of oil per day ("bopd")

- regional trucking restrictions were imposed between 19 and 29 April due to the expected annual spring thaw, which can cause wet and difficult road surface conditions: production from wells tied in via pipeline continued at a rate of approximately 212 bopd for the remainder of April; overall average production for the whole of April was therefore 354 bopd

- trucking restrictions were lifted on 29 April due to unusually dry weather allowing the local roads to dry out quicker than in previous years; trucked wells now back in production

- 9-25 battery ready for start up once final approvals are obtained from regulator, which will initially add another three producing wells

- costs incurred to date at the Rainbow redevelopment project indicate that operating costs per barrel are between US$20 and US$25, when measured at an average production rate of 400 bopd

- the variable operating costs per barrel of incremental production over and above 400 bopd are forecast to be between US$4 and US$10 per barrel, depending on whether the oil is transferred to the processing facility by pipeline or truck

- following the completion of the current programme, a summer work programme will be developed for Q3, to achieve further production enhancements and operating cost synergies

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Independent Resources [LON:IRG] has announced a reduction of around GBP500,000 in indebtedness and puts in place plans to substantially reduce holding company cash outgoings to around GBP700,000 over next 12 months Key points:

- A GBP297,989 reduction in trade creditors through the issue to certain such creditors of 245,788,895 new ordinary shares of 0.01p each in the Company at prices of 0.1p and 0.25p per Share

- A further c.GBP202,000 debt reduction, through the Company's directors accepting, in principle, payment in Shares for past services, at a price yet to be agreed, but which is intended to be at a significant premium to the Company's pre-announcement share price of 0.085 pence per Share

- A planned reduction in the Company's annual cash costs to c.GBP700,000 for the twelve months commencing 1 May 2016 with a plan to reduce ongoing costs to £50,000 per month thereafter.

The issue prices of 0.1p and 0.25p per Share represents premia of 17.6 per cent. and 194.1 per cent. respectively to the Company's closing mid-price of 0.085 pence on 9 May 2016, being the latest practicable business day prior to this announcement. The Board of Independent Resources PLC has entered into arrangements which will reduce the Company's existing trade creditors to approximately £500,000. The Company is progressing debt reduction discussions with other trade creditors and will update the market as and when further progress is made.

The group also issued an update on East Ghazalat. It said "Independent Resources Egypt Ltd is the Company's joint venture vehicle with Nostra Terra Oil and Gas Company plc, which owns a 50% interest in the East Ghazalat concession.

"IRE continues to make progress on the registration process with the Egyptian Government. This will allow it to receive its share of the East Ghazalat revenues from 1 July 2015.

"As announced on 25 January 2016, IRE remains in dispute with North Petroleum International SA the operator of East Ghazalat. IRE remains entitled to its share of revenues notwithstanding the dispute and expects the formalities with the Egyptian authorities to allow it to receive those revenues to be completed within approximately two months.

"IRE will receive directly from Egyptian General Petroleum Corporation its shares of revenue from East Ghazalat. IRG will make a further announcement on completion of those formalities.

"As part of the terms of the acquisition of East Ghazalat as announced on 15 October 2015, IRE issued a US$2.5m loan note to TransGlobe Petroleum International Inc, the vendor of East Ghazalat, repayable by 30 September 2017. IRG is jointly and severally liable with NTOG for the loan note.

"The amount to be repaid to TransGlobe pursuant to the terms of the loan note is subject to adjustment to reflect East Ghazalat's working capital position on 30 June 2015, together with the net cash flow attributable to the assets from 30 June 2015 until the 14 October 2015, the date of completion of the acquisition. The scale of the adjustment has not yet been agreed."







At 4:04pm:

[LON:AEX] Aminex PLC share price was -0.03p at 1.3p

[LON:BEM] Beowulf Mining PLC share price was 0p at 3.8p

[LON:BKY] Berkeley Energia Ltd share price was +0.25p at 30.5p

[LON:BNK] Bankers Petroleum Ltd share price was 0p at 106.5p

[LON:CEY] Centamin PLC share price was -3.3p at 106.3p

[LON:CHL] Churchill Mining PLC share price was +0.51p at 18.38p

[LON:CZA] Coal of Africa Ltd share price was 0p at 3.25p

[LON:FDI] Firestone Diamonds PLC share price was +0.75p at 30p

[LON:FRES] Fresnillo PLC share price was +18.5p at 1057.5p

[LON:GEMD] Gem Diamonds Ltd share price was -0.12p at 139.88p

[LON:HOC] Hochschild Mining PLC share price was +5p at 120.25p

[LON:KMR] Kenmare Resources PLC share price was +0.02p at 0.83p

[LON:NTOG] Nostra Terra Oil Gas Company PLC share price was -0p at 0.08p

[LON:SOU] Sound Energy PLC ORD 1p share price was -1.13p at 15.75p

[LON:VED] Vedanta Resources PLC share price was +11.75p at 370.75p

[LON:XTR] Xtract Resources Plc share price was -0.01p at 0.18p



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