Share price offer for L&M Energy made at a premium

Share price offer for L&M Energy made at a premium

23 October 2012 - L&M Energy Limited Chairman, Geoff Loudon, yesterday announced a conditional cash offer for all the shares and options in the company. The offer is being made through the newly formed New Dawn Energy Limited.

Mr. Loudon’s offer price of AUD$0.06 in cash per share represents a 43% premium to the closing share price for the shares on the ASX on 17 October 2012. It is also at a premium to the volume weighted average price of the shares on the ASX over the one, two and three month periods prior to 17 October 2012 of 40%, 40% and 23% respectively.

The consideration for the options ranges from AUD$0.000 to AUD$0.0599 in cash per option, depending upon the date and terms of issue of each option.

The offer is strongly supported by L&M Energy’s other key shareholders. Including Loudon’s own shareholding of 22.93%, a total of 71.72% of L&M Energy’s shareholders having committed to accept the offer unless a higher bid for their shares is received before the offer becomes unconditional.

The offer is conditional on New Dawn Energy receiving a minimum of 90% acceptances and certain other conditions.

Mr. Loudon, who in June injected A$5 million into L&M Energy by way of a bridging loan facility which subsequently became a convertible note, says L&M Energy will shortly need more capital.

“The offer will provide shareholders with the opportunity to sell their shares in L&M Energy at a significant premium rather than face the possibility of investing further or accepting a significant dilution of their shareholdings through a rights issue at a heavily discounted price due to current market conditions and the exploratory nature of the business.”

“I encourage shareholders to accept the offer as soon as it is made. It includes a withdrawal right if a higher price is offered and shareholders will not incur any brokerage fees.”

“Making an offer for L&M Energy is not something I have done lightly. However, I believe it is the right thing to do for shareholders and to ensure the continuation of the proud history of L&M Energy as a leading exploration company in New Zealand.”

About L&M Energy
L&M Energy Limited is a Wellington-based oil and gas exploration company that is listed on both the New Zealand and Australian stock exchanges. The company (together with its wholly owned subsidiary L&M Coal Seam Gas Limited) holds interests in a number of coal and petroleum exploration and prospecting permits throughout New Zealand, including in Taranaki, Waikato and the South Island.

ENDS

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