Partial redemption and amendment to terms of 9% Unsecured Convertible Notes
Highlights:
- Redemption and payment of approximately 40% of outstanding Notes
- New put date introduced and conversion price reset
- Amendment allows Noteholders time to assess drilling progress at Lempuyang and Lukut before making a decision regarding the redemption of their remaining Notes
On 5 January 2011, AED Oil Limited (ASX: AED) announced changes to the terms of its US$21,215,500 9% unsecured Notes which are listed on the Singapore Exchange (SGXST). AED has today redeemed approximately 40% of the Notes on issue in accordance with the terms of the Notes and agreed further changes to the terms of Notes. The agreed changes and redemption of Notes comprise:
- Redemption and payment on 23 February 2011 of US$8,605,000, being the face value of the Notes held and put to the Company in respect of that put date;
- Introduction of a new put date of 30 April 2011;
-Reset of the conversion price to $0.38 effective from 25 February 2011, which was based on a 7.5% premium to the VWAP calculation 3 days prior to 23 February 2011 put date; and
- A further reset price based on a 7.5% premium to the 5 day VWAP period prior to 16 April, with a floor price of 80% of the then current conversion price.
AED is working with the trustee to formalise these amendments.
AED believes these amendments are required as a result of delays in the Company’s testing program at its Lempuyang exploration well in Brunei. These delays have resulted in Noteholders having less information available regarding the progress of the Lempuyang well than the Company had expected them to have by this stage. Accordingly, AED believes that this has impacted their ability to make a fully informed decision whether or not to redeem all or any of their outstanding Notes on the original put date of 23 February.
The new put date of 30 April 2011 is expected to follow the completion of testing of the Lempuyang and Lukut well. Therefore, Noteholders will then be in a position to make a fully informed decision as to whether or not to redeem all or any of their remaining outstanding Notes.
AED’s Executive Chairman Mr David Dix said:
“The introduction of the new put date and changes to the terms are in the best interests of both AED and Noteholders. It allows us the time required to complete the testing and obtain those results and allows Noteholders sufficient time to assess the merits of an equity investment after receiving the results of testing the prospective blue zone in Lempuyang-1.”
“At this time we would also expect to have a decision on the extension to our Rombebai licence in Indonesia and the results of the initial assessment of the recent 3D seismic acquisition shot over the Puffin field (AC/P22).”
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