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Epic & Msn data
Epic DPL
Time: 16:30:02
Mid Price: 5.13
Change Today: 0.00
Change % Today: 0.00
Fifty Two Week High: 12.50
Fifty Two Week Low: 5.00
Market Capital: 27.10
Period & price data
Period Price
Now: 5.13
3 Months ago:
6 Months ago:
1 Year ago:
Additional information
Additional Information
Market: AIM
Sector: Energy
Epic: DPL
News: Latest news
Web Site: Dominion Petroleum
Other Articles: 03-11-200930-09-200908-09-2009

Crude Oil

Dominion Petroleum

Dominion is an independent energy company domiciled in Bermuda and dedicated to exploration for new oil and gas reserves in East and Central Africa. The Group was founded in 2004 and listed on the Alternative Investment Market of the London Stock Exchange in December 2006.

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Tuesday, August 18, 2009

Dominion Petroleum soars after suspension lifted and news of hedge fund financing is released

by Andre Lamberti company news image

Shares in Dominion Petroleum Ltd (AIM: DPL) had their suspension lifted this morning and promptly shot up after the Africa-focused group released a flurry of news statements, including results for the full year to end-December 2008 and news of a US$10 million equity funding from BlueGold Capital Management Ltd along with a re-financing.

Dominion stock was trading up more than 25 percent in morning deals, mainly on the news of the new financing.  The stock had been suspended since July 1 after the company had been unable to sign off its results until the re-financing was completed. 

Under the financing terms announced this morning, London-based hedge fund manager BlueGold has agreed to inject US$10 million into the group in return for 20 percent of Dominion’s currently issued share capital and payment in shares for settling the default on existing loan notes. In addition, BlueGold’s chief executive Dennis Crema is joining Dominion as a non-executive director with immediate effect. 

BlueGold invests mainly in the global commodities markets with an emphasis on oil derivatives trading. Assets under management at the end of July 2009 stood at US$1.4 billion.

The financing is conditional on shareholder approval to be sought at the annual general meeting of the company on September 8.

The deal envisages settlement of the current default of existing loan notes via the issue of 72.73 million Dominion shares to meet the coupon payments for December 2008, March 2009 and June 2009. Of the outstanding principal of the series A and B notes, 50 percent will be converted into common equity , and the maturity of the outstanding principal will be deferred by two years to October 2012.

In a separate statement, Dominion reported narrowing losses in the full-year and said the drilling programme is gathering momentum on some very prospective projects.  It narrowed its pretax loss to US$20.67 million from US$24.5 million a year earlier.

Over the next 24 months, the company plans to drill five exploration wells, complete seismic surveys in Democratic Republic of Congo Block 5 where it has a 100 percent working interest, continue its strategy of securing exploration acreage in and around East and Central Africa; and seek farm-in and farm-out arrangements, the acquisition of production or appraisal assets and asset swaps to manage exploration risk.

In Uganda, the licence for Exploration Area 4B was extended this month by two years to July 2011. It holds a 100 percent working interest in the acreage and is obliged to drill at least one exploration well there within the extended period.

Dominion has initiated a farm-out process in respect of EA4B, and the preliminary feedback from the companies who have viewed the data has been extremely positive giving the company a degree of comfort its assessment of the potential of the acreage is justified, it added.

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