BYRON ENERGY LIMITED This document is dated 12 January 2016
This is an important document. Please read it carefully before making an investment decision in relation to the Share Purchase Plan. If you have any doubts as to what you should do, please consult your stockbroker, accountant or other professional adviser.
If you have any questions in relation to how to participate in the Share Purchase Plan after reading this booklet, please contact the Byron Energy Limited Australia SPP Offer Information Line on 1300 737 760 if calling within Australia or +61 2 9290 9600 if calling from outside Australia. If you have any questions in relation to whether an investment in Byron Energy Limited through the Share Purchase Plan is appropriate for you, please contact your stockbroker, accountant or other professional adviser.
This document does not provide financial advice and has been prepared without taking into account your particular objectives, financial situation or needs.
This document may not be released or distributed in the United States. The ordinary shares of Byron Energy Limited being offered under the Share Purchase Plan have not been and will not be registered under the US Securities Act of 1933 (the "U.S. Securities Act") or the securities laws of any state or other jurisdiction of the United States. The ordinary shares of Byron Energy Limited offered under the Share Purchase Plan may not be offered, sold or resold in the United States except in a transaction exempt from, or not subject to, the registration requirements of the U.S. Securities Act and the applicable securities laws of any state or other jurisdiction in the United States.
Dear Shareholder 12 January 2016
Your directors are pleased to invite you to participate in an opportunity to subscribe for additional ordinary shares in Byron Energy Limited (Company) under a share purchase plan (SPP).
The SPP is offered to shareholders who at the record date at 7:00 pm (Sydney time) on 29 December 2015 had a registered address in Australia or New Zealand (Eligible Shareholder).
The issue price will be A$0.15 per share. This is the same price that was offered under the Company's share placement announced on 30 December 2015, being a 11.77% discount to the last ASX traded price of the Company's shares on 30 December 2015 and a 14.80% discount to the volume weighted average market price of shares traded in the ordinary course of ASX in the five trading days up to the date of the announcement of 30 December 2015.
The volume weighted average price of the Company's shares on ASX during the five trading days immediately before the announcement of the SPP was A$0.1761.
The purpose of the SPP is to raise funds for the Company's Gulf of Mexico oil and gas projects and to provide general working capital. Following our announcement on 11 December 2015 of a multi well farm out, a copy of which is enclosed, we look forward to our 2016 drilling programme which is expected to commence in February.
The SPP will raise a maximum of A$2.5 million.
The SPP will enable Eligible Shareholders, regardless of the number of shares they hold in the Company, to subscribe for their choice of any one of the following parcels of shares:
100,000 for the total amount of A$15,000;
66,667 for the total amount of A$10,000;
33,334 for the total amount of A$5,000;
13,334 for the total amount of A$2,000.
3
The SPP provides Eligible Shareholders with the opportunity to increase smaller holdings into larger and more financially viable parcels and expand shareholdings without the cost of brokerage or commission.
This SPP is optional and the offer is non-renounceable. Accordingly, Eligible Shareholders cannot transfer to other parties their right to subscribe for shares under the SPP. All shares issued under the SPP will rank equally with the existing ordinary shares of the Company and will carry the same rights.
If you wish to participate in the SPP, you can choose either of the following payments methods:
payment by BPAY®- please refer to the Biller code and Reference number on your personalised application form and contact your participating financial institution to make your payment. You are not required to return the application form;
payment by cheque, money order or bank draft - if paying by this method, complete the application form, attach your cheque, money order or bank draft in Australian dollars, drawn on a bank or financial institution in Australia and made payable to Byron Energy Limited and return them in the envelope provided.
No cash or card payments will be accepted.
The Terms and Conditions of the SPP and your personalised Application Form are attached. I recommend that you read the Terms and Conditions before making a decision regarding your participation in the SPP. I encourage you to contact your professional adviser if you are uncertain as to what action you should take.
If you have any questions in relation to the SPP, please contact [the Byron Energy Limited SPP Offer Information Line] on 1300 737 760 if calling from Australia or +61 2 9290 9600 if calling from outside of Australia.Thank you for your continued support of Byron.
Yours sincerely
Doug BattersbyChairman
