Australian oil and gas company Monitor Energy Limited advises that its proposed acquisition of up to a 90% interest in SOCA Petroleum Limited (SOCA), a company which holds oil production licences in Trinidad and a major local drilling company, is progressing, with two key agreements now executed.

Commenting on the execution of these key agreements Monitor Energy Limited Chairman, Mr Scott Spencer, said 'The execution of these documents is a key milestone in the completion of this transaction, one which will see the company become a significant oil production company.'

'On behalf of the board I would like to thank our shareholders for their patience during the period in which our securities have been suspended, patience we believe will be rewarded following completion of the transaction.'

As previously announced, Monitor, together with its corporate advisor Komodo Capital, are working to complete a transaction that would see the Company acquire up to a 90% interest in a company which holds an interest in oil production licences in Trinidad together with a major local drilling company.

Share Purchase Agreement In recent months Monitor, together with assistance from its technical and legal advisors, has been finalising a detailed Share Purchase Agreement to acquire up to 90% of SOCA ('SPA').

The Company is pleased to advise that the SPA, which is broadly in line with the Company's 30 July 2010 announcement, has now been executed and will form the basis of the Notice of Meeting currently being prepared by the Company.

Mandate for Equity Raising Executed Further to the Company's announcement on 23 December 2010, Monitor is pleased to announce that it has now entered into a mandate with Renaissance Capital ('Renaissance') one of Europe's leading investment banks ('Mandate').

Under the terms of the Mandate, Renaissance will act as book runner and lead manager in the proposed offering of securities by the Company to raise up to AUD$90 million (at AUD$0.05 per share) ('Capital Raising'). Funds raised pursuant to the Capital Raising will be used in part to fund the acquisition of the interest in SOCA and also to provide working capital to develop those assets together with the Company's existing project portfolio.

Marketing of the Capital Raising has been underway throughout North America and Europe in recent months with significant investor interest being expressed.

Tags: Monitor Energy Limited