London Stock Exchange welcomes Saffron Energy plc
Saffron Energy is a natural gas producer with interests in Northern Italy. Its portfolio includes one gas production (Sillaro) and two near-term gas production fields (Bezzecca and Sant'Alberto) near Milan and Bologna. These assets are being spun out from the Australia's Po Valley Energy Ltd (ASX: PVE) and will now be held through Saffron's wholly-owned Italian subsidiary, Northsun Italia S.p.A. PVE will maintain a 65% stake for at least 12 months from the date of the AIM listing, under required lock-in agreements.
The Board is very pleased to announce Saffron's admission to the AIM market of London Stock Exchange and its first day of trading on Friday 24th February under the ticker SRON.
As part of the AIM listing, the Company has raised £2.5 million before expenses by placing 50,000,000 new Common Shares with investors at a placing price of 5 pence per Ordinary Share, giving it an estimated market capitalisation of approximately £7.69 million on Admission, based on the Placing Price.
The UK Placing, led by the Company's corporate broker Turner Pope Investments Ltd, will enable Saffron to primarily fund accelerated development of all three gas fields, specifically to complete the Bezzecca gas field development, bringing the new Sant'Alberto gas field into production and refinancing pre-IPO and Bezzecca development bridging finance. Production is expected to increase from current modest levels to over 4,000 mcfpd by 2019.
Michael Masterman, Chief Executive Officer of Saffron Energy, commented:
“I am proud and delighted that Saffron Energy is joining AIM today. This is an important and transformational step for the Company. We believe our AIM listing will establish a more representative fair value for our high-margin gas fields while unlocking the upside that each asset possesses.
“Italy is a very good market to produce and commercialise gas. The gas from our fields is very pure. It is 99% methane, so the processing plant can be very small. The gas basically goes straight into the Italian national grid from the well.”
Grant Thornton UK LLP (Financial & Nominated Adviser)
Harrison J Clarke
Turner Pope Investments (TPI) Ltd (Broker)
Cassiopeia Services PR/IR