A total of up to 16 million units will be offered for sale at a price of $0.50 per unit. Each unit will consist of one common share and one-half common share purchase warrant. Each whole warrant shall entitle the holder thereof to acquire one additional common share at a price of $0.60 per share for a period expiring 18 months from the date on which the warrant is issued. The warrants shall contain a provision that should the common shares of the Corporation trade on the TSX Venture Exchange or other recognized exchange for a price of $1.00 or higher for 20 consecutive trading days at any time following the expiry of applicable resale restrictions in Canada, the holder of such Warrants will have 30 days, upon notice from the Corporation, in which to exercise such warrants, and any warrants not so exercised within such time period shall be cancelled and void.
The Corporation has retained the services of Jennings Capital Inc. and PowerOne Capital Markets Limited and Nash Fitzwilliams Ltd. of London, England to act as its agents on a best efforts basis for the Offering. As consideration for acting as agents, the Corporation has agreed to pay a due diligence fee to Jennings Capital Inc. and to pay to the Agents an aggregate cash commission equal to seven percent of the gross proceeds of the offering and a non-transferable agent's option to acquire that number of common shares equal to seven percent of the number of common shares issued pursuant to the Offering at an exercise price of $0.60 per common share for a period of 18 months from the date of closing, except where prohibited by regulation.
The net proceeds of the offering will be used to enable Avery to fund ongoing seismic and exploration drilling expenditures on the Corporation's exploration projects in Australia and the UK.
At Katandra, offshore Australia, Avery holds a 10% interest in Permit A/P 24 operated by OMV where an evaluation well was drilled to a depth of 1,450 meters in the Upper Vulcan formation encountering a seven meter column of 48 degree API oil. Porosity of the reservoir rock was 22% and the permeability was greater than two darcies. Data from this well is assisting partners in planning for further exploration and production potential.
In the Cooper Basin in Queensland, Australia, Avery is farming in on 2,650 square kilometers with Magellan Petroleum Australia Ltd. The area includes highly, prospective, under-explored land that is just being re-released for exploration.
In Northern Ireland, the operator of the South Larne project has informed Avery that the vertical seismic profile (VSP) program is currently being shot. One VSP has already been shot at Glenarm while the second shot will occur shortly at the Sheddings location. Data will be used to assist in determining potential drilling locations targeting hydrocarbon reservoirs located 800 to 1,000 meters below the surface.
Avery Resources Inc. is an international junior oil and gas exploration company based in Calgary, Alberta that trades on the TSX Venture Exchange. The company is committed to growing shareholder value through international acquisitions and exploration. Avery's primary interest is in expanding exploration projects in oil and gas basins located in countries that provide significant exploration upside coupled with favorable fiscal and legal systems.
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