11 October 2006
Private Placement of up to 3.0 million shares
Contact: Stephen W. Mason, President & CEO Tel: +44 7841 373 695
Martin H. Eden, Vice President Finance & CFO Tel: +1 (403) 268-6511
Wendy E. Shaw, Manager of Investor Relations Tel: +1 (403) 268-6518
Cecilie Schøyen, Investor Relations - Norway Oslo Tel: +47 22089605
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Artumas Group Inc. has retained ABG Sundal Collier Norge ASA as Lead Manager, with First Securities ASA as Co-lead Manager, to advise on and effect an equity issue directed towards professional Norwegian and international investors after the close of the Oslo Børs today. The equity issue will be carried out through a book-building process which will close on or before 08:30 (CET) 12 October 2006.
The planned share issue will amount to up to 3.0 million in a combination of new shares and existing shares, equal to approximately 16% of the existing number of outstanding shares in the company. Up to 1.8 million shares will be issued as new common shares in the offering, and up to 1.2 million shares will be borrowed from certain members of Artumas' management and sold in the offering. The borrowed shares will be returned by the Lead Manager following filing and approval of a security note to the Oslo Børs after closing of the offering.
The net proceeds of the offering will be used to finance capital expenditures, including the ongoing drilling program of the Company's Mnazi Bay concession, exploration activities in the Rovuma Onshore Block in Mozambique and assessment of commercial gas off-take opportunities.
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Artumas Group Inc. is an international energy producer focused on capitalizing its hydrocarbon reserves in the Rovuma Delta Basin in Tanzania and Mozambique. By exploring, developing, producing and commercializing known petroleum systems, Artumas is poised to deliver a sustainable rate of return for its stakeholders while creating social and economic opportunities for the people of Eastern Africa.
Artumas' common shares trade on the Oslo Stock Exchange under the symbol AGI.
