Pursuant to Norwest’s announcement made on 9 November 2011 about Norwest’s intention to invite Shareholders of Norwest as at as at 5 pm WST on the Record Date of November 21st 2011 to participate in Norwest’s one for eight non renounceable entitlement issue, the Directors of Norwest are pleased to offer you as a Norwest shareholder on the Record Date to subscribe for one new ordinary fully paid share in the capital of Norwest for every eight existing ordinary fully paid shares in the capital of Norwest held by you on the Record Date at the issue price of USD 0.03 per New Share to raise up to USD 2,913,837 before expenses of the Entitlement Issue.
Each New Share will rank equally with the existing shares in the capital of Norwest. The Entitlement Issue allows Eligible Shareholders to acquire the New Shares without brokerage or other costs that would apply to an on-market purchase of shares. The Entitlement Issue is fully underwritten by Patersons Securities Limited for which it will be paid a fee of 5% of the amount underwritten.
Patersons will also be paid a corporate advisory fee of USD 60,000 plus GST. Where the entitlement of an Eligible Shareholder results in a fraction of a New Share, that fraction will be rounded down to the nearest whole New Share.
Purpose of the Offer
The purpose of the Entitlement Issue is to raise up to USD 2,913,837 for expenditure on working capital and exploration. It is currently the intention of the Company that its exploration focus will, over the next four months to the end of March 2012, be on the following:
1. The hydraulic fracture stimulation and testing of Arrowsmith 2;
2. The 3D seismic programme to be conducted on EP368 and EP426;
3. The 2D seismic programme over the UK Wessex Basins; and
4. The continued evaluation of SPA-0013, and that exploration effort is currently estimated to cost the Company an amount equal to about 70% of the sum raised by this Entitlement Issue.
The Entitlement Issue will also give Eligible Shareholders the opportunity to acquire additional shares in Norwest without having to pay brokerage costs.
