Retail Entitlement Offer Booklet and Covering Letter - AJ Lucas

Overview of the Recapitalisation Plan
• Balance Sheet Recapitalisation Plan to raise gross proceeds of approximately $165.0mm (including AJL share of Bowland sale proceeds of
$16.2mm)
• Size and structure
– Institutional Placement – 9.26m shares to raise approximately $11.1mm
– 1 for 1.25 accelerated non-renounceable Institutional Entitlement Offer – to raise approximately $105.1mm
– 1 for 1.25 non-renounceable Retail Entitlement Offer – to raise approximately $32.5mm
– Cash from Centrica for the sale of the 6.25% interest in Bowland license – GBP10mm ($16.2mm)
• $1.20 fixed Offer Price
– 15.6% discount to the Theoretical Ex-Rights Price (“TERP”)
– 25% discount to last closing price on Thursday, 13 June 2013 of $1.60
• Approximately 124mm new shares will be issued as part of AJL’s Recapitalisation Plan, increasing AJL’s fully diluted shares and options on
issue to approximately 284.5mm
• Institutional Placement and Institutional Entitlement Offer
– Combined will raise approximately $116.2mm
– AJL’s largest shareholder - Kerogen – has agreed to subscribe in full for its pro rata entitlement and has entered into an
Underwriting Agreement under which it has agreed to underwrite any shortfall arising from the Institutional Entitlement Offer,
excluding pre-commitments obtained from other existing institutional shareholders of $19.8mm, provided the issue does not cause
its shareholding to exceed 49.99%
• Kerogen’s total commitment is for up to $85.3mm of new shares (see details over page)
– Other existing institutional shareholders have provided commitments to subscribe for pro rata entitlements of $19.8mm and also
agreed to subscribe in full for the Institutional Placement
– Shareholders will not receive any proceeds for entitlements not taken up 8