Bayfield Energy Holdings says that, in connection with the proposed merger with Trinity Exploration & Production Limited (the "Merger"), it has conditionally raised gross proceeds of US$90 million through the issue of 47,500,000 new ordinary shares (Placing Shares) at a price of 120 pence per share (the "Placing"). The price and number of Placing Shares reflect the proposed 1 for 10 share consolidation referred to in the Admission Document.

The proceeds will be used to accelerate the enlarged group's work programme which is expected to grow net production to 5,000 barrels of oil per day (bopd) by the end of 2013 and includes six exploration wells targeting net unrisked best estimate prospective resources of 46 million barrels of oil equivalent in 2013 and 2014. The enlarged group will be fully funded to fulfil its existing licence obligations and the assets are expected to generate strong cash flows for re-investment.

Completion of the Merger and Placing is subject to a Bayfield shareholder vote in respect of which irrevocable undertakings representing 50.54 per cent. of the issued share capital of Bayfield to vote in favour of the resolution to approve the Merger have been received.

Tags: Bayfield Energy Holdings