RXT and Lime Rock Partners Sign Term Sheet for Share Issue and Bond Issue


Reservoir Exploration Technology ASA (`RXT`) has signed a term sheet with Lime Rock Partners to finance the capital expenditure of RXT 4 and RXT 5. RXT has as a part of the term sheet received indicative commitments from certain existing shareholders for subscription on the same terms.  The financing requirement has come about as a result of lack of progress on alternative lease financing on the equipment for crews RXT4 and RXT5, cash flow shortfall from operations in the Gulf of Mexico and delays on the start-up of RXT 4 and RXT 5 operations.

The transaction will be a combination of common shares at NOK 12 per share and bonds with warrants with strike at NOK 13.20.

The total transaction, as covered by the signed term sheet and received indicative commitments,will be approximately USD 60 million. Existing shareholders and employees will be offered to subscribe for the same instruments following a final agreement. Following this transaction the Board and management of RXT envisage that the financing for the committed capital expenditure program will be concluded.

The signed term sheet is subject to a satisfactory due diligence, a favourable decision in Lime Rock`s investment committee and other less material issues.

Final agreements are expected to be signed on Tuesday 18 November. Following this an extraordinary general meeting is assumed to be held on the 2nd December to consummate the

About Lime Rock Partners:
Established in 1998, Lime Rock manages $3.5 billion of private capital for investment in the energy industry through Lime Rock Partners, investors of growth capital in energy companies worldwide, and Lime Rock Resources, acquirers and operators of oil and gas properties in the United States. With $3.0 billion under management, Lime Rock Partners is a creative, value-adding, and long-term investor of growth capital in exploration and production, energy service, and oil service technology companies worldwide. From locations in Aberdeen, Scotland; Houston, Texas; and Westport, Connecticut, the Lime Rock Partners team brings together a global network of relationships, deep interdisciplinary expertise in finance and energy company operations, and a strong track record of value creation.  For more information, please visit www.lrpartners.com.

About RXT:
Reservoir Exploration Technology ASA (RXT) is the only marine geophysical company specializing in multi component seismic seafloor acquisition.  Multi-component seismic solves several imaging challenges that cannot be resolved with towed streamer seismic, and targets improved oil recovery from existing fields. The technology also gives better data quality for appraisal and development, and is also the solution where towed streamers are impractical due to high density of platforms and/ or shallow waters. The Company has offices in Oslo, Norway in Epsom, England and Houston, Texas. RXT is listed on the stock exchange in Norway (OSE ticker: RXT). URL: www.rxt.com


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