Austin Exploration Limited (ASX: AKK) (“Austin” “the Company”) advises it intends to seek shareholder approval to change the Company’s name to Fremont Petroleum Corporation Ltd to better reflect the current asset base and alignment with its focused strategy on low-risk, high margin development and production of crude oil from its 100% owned and operated Pathfinder property, in Fremont County, Colorado. The high risk exploration phase and de-risking program of the Pierre formation is now complete. The Company has confirmed that the petroleum system that is responsible for the neighboring 16 million barrel Florence Oil Field not only extends, but improves as it moves over the Company’s Pathfinder property. Significant oil and gas reserves remain in place and economically exploitable even in the current low oil price environment. In addition to the name change, the Company will also seek shareholder approval to consolidate the number of ordinary shares and options on issue on a 10-for-1 basis. The Company’s Board has received feedback that a leaner, more efficient capital structure is a key requirement for making the Company more attractive to a broader investor base in Australia, Asia and North America where investor interest in the energy sector is returning now that oil and gas price markets have stabilised. Under the proposed share consolidation, every 10 shares will be consolidated into 1 share. The same consolidation will apply to any options outstanding at the time. The current and future capital structure is reflected in the table below. 113 N Santa Fe Ave ● Florence, Colorado, USA 81226 Suite 302 ● Level 3, 17 Castlereagh Street Sydney ● NSW 2000 2 Class Current capital structure Proposed capital structure Fully-paid ordinary shares 1,975,270,710 197,527,071 Unlisted options 804,999,878 80,499,987 Management commentary “Over the past 12 months, Austin has weathered changes in energy markets that have led the Company to consolidate its asset base, significantly reduce its costs, and now focus all of its efforts on unlocking the potential value of the largely untapped and highly valuable Pathfinder Project in Fremont County, Colorado”, Austin’s Executive Chairman Guy Goudy commented. “As this value materializes with further development drilling, the Board feels it is important that we have an operating name the better reflects our asset base, our location, and a name that aligns easily with our focus. We believe this to be an important undertaking to align the field actions to the significant location of the Pathfinder Project. It will help in future marketing, community relations and investor engagement efforts. “With respect to the proposed capital consolidation, we believe that moving to a simpler capital structure is critical in attracting a broader pool of investors, including institutional investors that have a requirement for more consolidated capital structures. “Austin is now on the cusp of delivering significant shareholder value from its field development activities in Colorado and we believe the timing is right to seek shareholder approval for these two important initiatives.” Austin will shortly lodge a Notice of Meeting to seek shareholder approval for these proposed changes. As well, solid operational progress is being made the field, and the Company will update shareholders shortly in this regard. -ENDSReleased through: Ben Jarvis, Six Degrees Investor Relations: + 61 (0) 413 150 448
AKK Price at posting:
0.4¢ Sentiment: Hold Disclosure: Held
