JKX Oil & Gas PLC plans to place at least $40 million in five-year subordinated eurobonds, the company said in a statement for the London Stock Exchange.

The bonds will be issued in principal amounts of $200,000 and will be issued at an issue price of 100 per cent. The Bonds will have an annual coupon of 8.00 per cent. per annum and a conversion price set at an initial premium of 25% above the volume weighted average price of the ordinary shares between launch and pricing. The company will have the option to redeem the bonds after four years.

ISM Capital LLP is the book-runner.

"The board of directors has concluded that the company would benefit from raising additional funding to increase momentum in its development, appraisal and exploration programme, and for the upgrade of its facilities in Ukraine and Russia. The Board is satisfied that the amount being raised is appropriate for the requirements of the company," JKX said.

In Ukraine, JKX owns Poltava Gas and Oil Company, which hold four licenses for the development of the oil and gas deposits of the Novo-Nikolayev complex in Poltava Region, as well as a Zaplavske deposit exploration license, a Yelyzavetivske deposit license, and yet another applying to the Chervonoyarsko-Skhidne field.

JKX also has operates in Russia, Hungary, Bulgaria and Slovakia.

Via his Ralkon Commercial Ltd. (British Virgin Islands), Ukrainian businessman Ihor Kolomoisky owns 27.06% of the stock in JKX.