Xtract Energy to raises GBP 3 million to fund Elko Energy acquisition

Monday, 29 Aug 2011

Xtract Energy announced it has raised GBP 3 million from institutional shareholders to help fund the acquisition of the outstanding 50% of shares it does not own in Elko Energy, an explorer of oil and gas offshore Denmark. Its shares have been restored from suspension.

The fundraiser comprises a placing of 240,000,000 new Xtract shares at a price of 1.25 pence, raising approximately GBP 3 million before expenses. Some of the funds raised will be used as working capital for the enlarged group.

Xtract also announced that it has entered into a conditional agreement with YA Global Master SPV to provide potential future funding of up to GBP 12.5 million as part of an equity line facility.

The Elko deal involves Xtract acquired outstanding Elko Energy for 350,245,343 new Xtract shares, which represents approximately 23.3 per cent of the enlarged share capital.

Re admission of the enlarged share capital is expected to take place on September 13th 2011. Following completion of the Elko acquisition, Xtract will no longer be an investing company for purposes of the AIM Rules.

The acquisition remains conditional on approvals by its shareholders. Irrevocable undertakings to vote in favour of the acquisition have already been given by Cambrian Investment Holdings, which holds 37.2% of the existing shares.

A number of directors have agreed to subscribe for, in aggregate, 17,600,000 placing shares at the placing price.

Mr Peter Moir CEO of Xtract Energy said that "We are very pleased to have successfully raised GBP 3 million, the net proceeds of which will be used to fund the costs associated with acquiring Elko Energy Inc and the ongoing working capital requirements of the company.

He added that “Since the new management team have come in, we have strengthened the balance sheet, appointed a new chairman and focused on core projects, while negotiating royalty arrangements for our non core assets, with significant upside potential. The acquisition of Elko and re listing of the company as an operating business completes the turnaround and we anticipate drilling the high impact Luna exploration well in Denmark during the fourth quarter of 2011.”

(sourced proactiveinvestors)

The biggest company you never heard of

Thu Mar 10, 2011 10:47am GMT

Performance is rewarded on a scale that would turn even Wall Street green, with bonuses for star traders running into the tens of millions. Glencore's 500 partners and key staff are sitting on a book value of $20 billion.

The secret, says the second outsider, is the traders' incredible focus. "I don't recall talking to any of these guys -- and I've spent a lot of time with them -- about anything other than business," he told Reuters. "I have no idea what sort of family life these guys have. This is everything."

Employees are hired young and expected to make a career at the group, where they are known as either "thinkers" -- bright number-crunchers who design the company's complex financial deals -- or "soldiers", the hard-driven traders who fight to win the transactions.

The company's 10 division managers are aged 37 to 52 and remain largely anonymous outside Glencore's business circles. "They're really bright guys, they are really focused, they play to win every day," says a mining executive in North America. Or as the second outsider puts it: "They look like kids, really -- but they are incredibly impressive individuals."

Nobody more so than Chief Executive Ivan Glasenberg, a lean publicity-shy operator whose sport is race-walking. Glasenberg, 54, grew up in South Africa and has been a champion walker for both South Africa and Israel. Each morning he runs or swims, often with colleagues. "The thing about Ivan, he can fly in and meet presidents of countries but he also talks to the guy on the trading floor," said Jim Cochrane, chief commercial officer and executive director of the Kazakh mining group ENRC.

After earning an MBA at the University of Southern California in 1983, Glasenberg was hired by Glencore as a coal trader in South Africa. He does not suffer fools and has a fiery temper, but is also intensely charming and has a sharp memory for details about people, according to people who know him. Despite being a billionaire in charge of thousands of staff, "this is a guy that picks up his own phone," the second outsider said. For more visit Thomson Reuters site