CHK Oil Limited has entered into a conditional placing agreement with Patrons Securities Limited to issue up to 87.00 million new shares at HK$0.21 each, representing:
• 10.01% of the company’s existing issued share capital • 9.10% of its enlarged share capital upon completion
The placing price reflects:
• a 16.0% discount to the 5 June 2026 closing price (HK$0.25) • a 17.6% discount to the five-day average closing price (HK$0.255)
Gross proceeds are expected to reach HK$18.27 million; after a 4.0% placing commission and other expenses, net proceeds are estimated at HK$17.35 million, or approximately HK$0.199 per share.
Use of funds • HK$13.00 million (74.9%) earmarked for partial repayment of a HK$26.97 million loan from controlling shareholder Xin Hua Petroleum (Hong Kong) Limited by 10 July 2026. • HK$4.35 million (25.1%) allocated to business operations and general working capital by 31 December 2026.
Mandate and shareholding impact The new shares will be issued under the existing general mandate approved on 27 June 2025, which authorises up to 173.87 million new shares; no shares have been issued under this mandate to date.
Shareholding structure: • Pre-placement: Xin Hua 63.52%, other public shareholders 35.36%, directors 1.12% • Post-placement (assuming full take-up): Xin Hua 57.74%, placees 9.10%, other public shareholders 32.15%, directors 0.99%
Conditions and timeline Completion is subject to Stock Exchange listing approval and customary warranties. If conditions are unmet by 3 July 2026, the agreement may be terminated. Completion is scheduled for 8:00 a.m. on the business day following satisfaction of all conditions.
The company states that the placement will strengthen its capital structure, broaden the shareholder base and reduce gearing through partial loan repayment. Shareholders are advised to exercise caution, as completion remains subject to conditionality.
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