Closing of Equity Offering by way of private placement
Exploration and production company, Silverstone Energy Limited, today announced the closing of an equity offering by way of private placement to European and North American institutional investors which raised total proceeds of £47.5 million ($100 million Canadian).
Silverstone was founded in March 2005 and to date has drilled three exploration wells, all of which resulted in gas discoveries.
The proceeds of the fund raising, which closed on 31 May, will be used to carry forward the first of Silverstone’s Southern North Sea development projects and allow the company to maintain exploration momentum by funding its drilling programme over the balance of 2007 and 2008.
Silverstone expects their most recent discovery, the Viking Lx development, to be on stream in the autumn of 2008.
In commenting on the success of the financing, President Matt Brister, said: “We are pleased to have accessed capital and broadened our shareholder base at a time when we see opportunities improving. We hope to use the solid financial footing now in place to support our first field development and expand on both the number and quality of our opportunities.”
Silverstone is an active private Aberdeen based North Sea explorer on its way to becoming a producer. Tristone Capital and Bridgewell acted as financial advisers to the company on this transaction.
12 March 2007
Gas Discovery Southern North Sea 49/17-14 Lx Exploration Well
Silverstone Energy Limited today announced a promising gas discovery in their Southern North Sea 49/17–14 Lx exploration well. The Lx discovery is estimated to contain approximately 50 billion cubic feet of gas in place in a 311 foot gas column in the Rotliegendes sandstone reservoir. Associated discovered accumulations in adjacent fault blocks increase the estimated Lx B North Field gas in place number up to more than 120 billion cubic feet of gas.
Silverstone and partners, ConocoPhillips and BP, are reviewing the well results and other technical and commercial information to plan the development of the field.
Silverstone Chief Operating Officer, Steve Horton, said: “In our first year of operations, Silverstone has drilled three discovery wells in the Southern Gas Basin. Our challenge now is to work with our partners and bring these new fields effectively and efficiently onto production”.
Silverstone was formed two years ago as a joint venture between the specialist energy focused private equity fund, Lime Rock Partners, and Calgary based independent oil and gas company, Storm Ventures International Inc.
A farm-in agreement with ConocoPhillips and BP covers a selection of exploration opportunities in blocks 49/12a, 49/16, 49/17, 48/20b, 48/25b and 49/21 in the vicinity of the prolific V Fields and Viking Fields. Silverstone hold a number of other Southern and Central North Sea licenses awarded during the 22, 23 and 24 UK Seaward Licensing Rounds.
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