Share Purchase Plan
The Board of Marion Energy Limited (Marion or Company) (ASX: MAE, MAEO, MAEOA) is pleased to announce that it intends to implement a Share Purchase Plan (SPP). New fully paid ordinary MAE shares will be issued at 2.2 cents per share. Total funds raised under the SPP will be capped at $6,050,000.
SPP
Under the SPP, shareholders with registered addresses in Australia or New Zealand who were on the share register as at 7pm (AEDT) on 30 March 2011 will each be entitled to subscribe for up to $15,000 worth of shares at an issue price of 2.2 cents per share. This price represents a discount of 15.4% to the 2.6 cents closing price of Marion Energy shares on 28 March 2011.
The SPP will close on the earlier of Tuesday 19 April 2011 or the date the SPP becomes fully subscribed. The Company reserves the right to extend the closing date.
Letters of offer and personalised bar-coded acceptance forms will be sent to eligible shareholders on or about Monday 4 April 2011.
The number of shares to be issued under the SPP will be capped at 275 million. MAE reserves the right to close the SPP earlier if this cap is reached.
The SPP will provide eligible shareholders with an opportunity to purchase shares in the Company at a discount to the current market price. The shares may be purchased without brokerage or other costs.
Use of funds
The fundamental reason for the SPP is to aggressively continue the implementation of the 16 well remediation and workover program at the Company’s Clear Creek, Utah project which is expected to be completed in late 2011. As a result of this program, production restarted on December 15, 2010. The Company has stated that it expects meaningful production rates by the end of March 2011 quarter and a production level of 5 million cubic feet per day by the end of the June 2011 quarter.
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