Closing of Over-Subscribed Private Placement:
USD 170 Million Gross Proceeds
Combination of Common Shares and Convertible Bonds
Artumas Group Inc. (OSE: AGI)
Artumas Group Inc. is pleased to report on the successful closing of the Private Placement, consisting of an equity issue and a convertible bond issue, announced on 7 November 2007, for gross proceeds of USD 170 million (NOK 899 million).
The equity issue comprised of 12 million common shares priced at 44 NOK per share for gross proceeds of USD 100 million (NOK 528 million), equal to 48.7% of the existing number of outstanding shares in the company. Settlement date for the new common shares is expected on or about 14 November 2007. A prospectus for the listing of the new shares is being filed with Oslo Børs and the first day of trading for the new shares is expected to be on or about 15 November 2007.
Concurrently, and on the approval of the company's Board of Directors, gross proceeds of USD 70 million (NOK 370 million) were raised in convertible bonds carrying an annual coupon of 6% per annum, paid semi-annually and maturing on or about 20 November 2012. The conversion price is NOK 60.5 (USD 11.44) per common share of Artumas Group Inc., subject to adjustment. The Company has the right to call the bonds after three years if the closing price of the Artumas-shares on the Oslo Børs has exceeded 150 percent of the conversion price for at least 20 trading days within a period of 30 consecutive trading days.
Mr. Steve Mason, President and CEO of Artumas Group, stated "We are encouraged by the strong market support expressed for the Artumas business plan, especially in this time of financial market uncertainty. The net proceeds of this offering will be used to significantly advance Artumas' understanding of the crude oil exploration potential in the Rovuma Basin in Mozambique, and to appraise the development potential of the Mnazi Bay and Msimbati Gas fields, as well as the surrounding resource potential in the Mnazi Bay Concession in Tanzania".
The offering was subscribed by Norwegian and International institutional investors.
ABG Sundal Collier Norge ASA acted as joint Lead Manager in the equity issue and Lead Manager in the convertible bond issue. First Securities ASA acted as joint Lead Manager in the equity issue and Co-Manager in the convertible bond issue. DnB NOR Markets acted as Co-Manager of the equity issue.
For further information, please contact: www.artumas.com
Stephen W. Mason, President & CEO +44 784 137 3695
Cameron Barton, CFO +1 403 268 6511
Wendy Shaw, Manager of Investor Relations +1 403 681 8960
Artumas Group Inc. is an international energy producer focused on monetizing its hydrocarbon resources in the Rovuma Delta Basin in Tanzania and Mozambique. By exploring, developing, producing and commercializing known petroleum systems, Artumas is poised to deliver a sustainable rate of return for its stakeholders while creating social and economic opportunities for the people of Eastern Africa.
Artumas' common shares trade on the Oslo Stock Exchange under the symbol AGI.
FORWARD LOOKING STATEMENTS
This news release may contain forward-looking statements including expectations of future production, cash flow and earnings. These statements are based on current expectations that involve a number of risks and uncertainties, which could cause actual results to differ from those anticipated. These risks include, but are not limited to: the risks associated with the oil and gas industry (e.g. operational risks in development, exploration and production; delays or changes in plans with respect to exploration or development projects or capital expenditures; the uncertainty of reserve estimates; the uncertainty of estimates and projections relating to production, costs and expenses, and health, safety and environmental risks), commodity price, price and exchange rate fluctuation and uncertainties resulting from potential delays or changes in plans with respect to exploration or development projects or capital expenditures.
This news release is not for dissemination in the United States or to any United States news services. The common shares of Artumas have not and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold in the United States or to any U.S. person except in certain transactions exempt from the registration requirements of the U.S. Securities Act and applicable state securities laws.
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
NOTICE
Oslo Bors has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
