Silvermere Energy (formerly Chalkwell Investments) has conditionally raised £1.52 million via a placing at 25p per share. The proceeds of the Placing will be used to provide working capital for the Group and to pay the costs associated with the acquisition of an interest in the Mustang Island 818-L field and admission to trading on AIM.

The development of the Mustang Island 818-L field, located in Kleberg County waters of the Gulf of Mexico, is a field re-habilitation project targeting bypassed or only partially produced gas-condensate. During the period from January 1980 to February 1995, the field had produced a total of 138.9 Bcf of gas. The Mustang Asset comprises a 33.3 per cent working interest and a 20.83 per cent. net entitlement interest (after deductions of overriding royalties) in the Mustang Licence Area. The Company is currently an investing company under the AIM Rules. Trading in the Company's Ordinary Shares is currently suspended. The Acquisition requires the approval of Shareholders since, inter alia, it will result in a fundamental change in the business of the Company and will constitute a reverse take-over under the AIM Rules.

The Competent Person's Report included in the admission document assigns proven and probable reserves attributable to Silvermere's net entitlement interest in the Mustang Asset, which RPS has valued at $29.36 million (approximately £18.35 million).

Proposed chief executive Andy Morrison said: "We are very pleased to be bringing the Company back to the market with a promising and attractive asset. The area surrounding the Mustang Asset has a proven producing history and continues to have significant potential.

"I would like to thank our existing and new shareholders for their support. We very much look forward to developing the Mustang Asset and the Company as a whole and to updating the market on our progress in due course."

Tags: Silvermere Energy