Polo increases interest in Signet Petroleum LTD

31 January 2012

Kerman & Co LLP advised long-standing client Polo Resources Limited on its subscription for a further 1,428,571 shares in Signet Petroleum Limited, an African oil and gas exploration company, for total consideration of US$5 million from the subscription is pursuant to the option granted to Polo by Signet on 22 August 2011. The proceeds of the subscription will allow Signet to meet its short term working capital requirements and to fund the acquisition of 3D seismic in Tanzania and seismic data in Burundi.

As part of the subscription Signet have agreed to an extension of the call option period with respect to up to 2,857,143 new Signet Shares (US$10 million at an exercise price of US$3.50 per share) from 31 January 2012 to 31 May 2012 (or earlier subject to agreed milestones being achieved by Signet).

Following the grant of new shares, Signet will have 32,852,379 issued ordinary shares, of which Polo holds 4,952,379 shares, representing 15.07 per cent of Signet's total issued shares, and 12.2 per cent of Signet's issued shares on a fully diluted basis.

Executive Co-Chairman of Polo, Neil Herbert commented:
"Signet is making significant progress with its African oil and gas projects and as a result I am very pleased to invest a further US$5 million and extend the option to invest up to a further $10 million at the same value per share."

Michael Corcoran from the Corporate department advised Polo Resources Limited on this transaction.