Sound Oil to raise £4 million from private placement of stock

Company also announces completed acquisition of Celtique Energie

By Devika Patel

Knoxville, Tenn., Nov. 10 - Sound Oil plc said it has arranged a £4 million private placement of stock with Astin Capital Management Ltd. The placement may be increased by £6 million.

The company will sell ordinary shares at a price equal to 90% of the average price of the stock over the preceding 40 days.

Investors also will receive six three-year warrants for every 10 shares purchased. The warrants are each exercisable at 110% of the average price of the underlying shares for the 40 trading days prior to settlement.

Proceeds will be used for drilling operations, including the Nervesa discovery, during 2012, future acquisitions and development.

In addition, the company said it acquired Celtique Energie SpA, a private Italian company that owns 50% working interests in three oil and gas permits in Italy. Sound Oil previously held a 50% interest in each of these permits which has now increased to 100%. The company paid $9 million for this acquisition, comprised of $5 million in cash, 59,003,029 ordinary shares valued at $2.5 million and 32,995,553 ordinary shares valued at $1.5 million.

The oil and gas company is based in London.

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