Rocksource ASA has successfully completed a NOK 250 million equity issue directed towards Norwegian and international institutional investors. The private placement was approximately three times over-subscribed and due to the significant interest shown by institutional investors, the Company decided to utilize its option to increase the placement by NOK 50 million to NOK 250 million. The price in the book-building was set at NOK 3.00 per share, representing a less than 5 per cent discount to the volume weighted average share price of the Company in January 2011. 83,335,000 shares will be issued following the private placement. The completion of the private placement is partially conditional upon the approval by an Extraordinary General Meeting in Rocksource.

The proceeds from the private placement will be used to strengthen Rocksource's financial flexibility ahead of the Company's upcoming exploration campaign.

Trygve Pedersen, CEO of Rocksource ASA commented: "I am delighted by the response we have received from the market. Following this successful raise we will be fully funded for our upcoming 2011 drilling campaign and into 2012, without utilizing the existing NOK 150 million tranche based equity facility. Further, the private placement has provided our Company with a stronger shareholder base than we have ever had before. We can now turn our full attention towards our high potential drilling campaign - a campaign in which we have great belief.'

The current sanctioned 2011 drilling campaign consists of five sanctioned wells, which in total will test approximately 200 million barrels of oil equivalents net risked resources. These high graded prospects have an average chance of success of approximately 50 per cent.

The Board of Directors resolved to increase the share capital by NOK 26,224,887 through the issue of 26,224,887 shares. These shares are issued based on the existing authorisation to the Board of Directors to issue shares. These shares will become listed and tradeable upon registration in the Norwegian Register for Business Enterprises, which is expected to take place on or about 8 February 2011. The Board of Directors decided to waive the preferential right of existing shareholders to be able to swiftly complete the private placement. Through the proposed repair issue directed towards the shareholders of Rocksource as of close of the Oslo Stock Exchange on 1 February 2011, the interest of the current shareholders will be maintained. Following the resolution by the Board of Directors the share capital will be NOK 288,836,918 and consist of 288,836,918 shares with a nominal value of NOK 1.00 per share. The new shares to be issued will be entitled to dividend from the time the share capital increase is registered with the Norwegian Register for Business Enterprises.

The issuance of the remaining 57,110,113 shares will be conditional upon approval by the Extraordinary General Meeting in the Company, which will be summoned for 23 February 2011. These shares will be listed and tradeable following a resolution by the Extraordinary General Meeting to issue the shares, the approval of a listing prospectus by the Financial Supervisory Authority and the registration of the share capital increase with the Norwegian Register for Business Enterprises.

Following such a resolution by the Extraordinary General Meeting, the Company's share capital will be NOK 345,947,031 and will consist of 345,947,031 shares with a nominal value of NOK 1.00 per share.

Tags: Rocksource ASA