Proposed Amendments to terms of 9% Unsecured Convertible Notes
AED Oil Ltd (ASX Code: AED) has today sent a letter to holders of AED's US$21,217,500 9% unsecured convertible notes listed on the Singapore Exchange (SGX-ST).
In order to allow noteholders to be informed of the results of AED's upcoming testing program at Block L, Brunei and ahead of key developments on our Indonesian and Australian assets, the Company is proposing amendments to the terms and conditions of the convertible notes.
The amendments comprise the introduction of two new put dates, 10 July 2011 and 10 January 2012, and a 10% ex-gratia reduction to the exercise price to 55 cents.
AED Oil's Executive Chairman Mr David Dix said the introduction of new redemption dates and the ex-gratia reduction of the exercise price are in the best interests of both noteholders and AED.
"This step forms part of the company's capital management program and should incentivise noteholders to continue their relationship with AED, by allowing them to participate in any upside of AED's exciting operational developments in early 2011, while increasing funding security for AED," Mr Dix said.
"We eagerly anticipate significant corporate developments over the next few months including commencement of Brunei Lempuyang-1 testing in mid-January 2011, followed by the testing of Lukut-1," he said.
"The results of AED's request to extend the expiry date for the Rombebai PSC from November 2011 until November 2014 are also expected to be known."
"If extended, the licence would allow AED to recommence farm-out discussions with interested parties and move to the operations phase."
Additionally, the results for the 3D seismic which was recently shot for Puffin field on AC/P22 will be received.
AED is grateful for the support the noteholders have shown for AED's business, in many cases since as early as July 2007, and hopes to continue the relationship with those noteholders.
For more information please visit our website www.aedoil.com or contact:
Richard Little Chief Financial Officer +61 (3) 9656 7800
Please download PDF to read the letter to noteholders.
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