South Sea Petroleum Holdings (HKG:0076) announced that it has entered into 2 amendment agreements for its US$100 million 6% convertible debentures and US$250 million 3% convertible debentures.

Three amendments were made for the US$100 million convertible debentures: the interest rate be changed from 6% to 3% per annum; the conversion price shall be adjusted from HK$3.875 (fixed price) to floating market prices, and the total number of conversion shares (for the whole US$100 million debentures) will not exceed 3 billion shares; and be changed from flexible payment schedule to specific payment day, i.e. the investor will complete the payment for US$100 million debentures on or before 31 December 2013.

Two amendments were made for the US$250 million convertible debentures: the total number of conversion shares (for the whole US$250 million debentures) will not exceed 7.5 billion shares; and be changed from flexible payment schedule to specific payment day, i.e. the investor will complete the payment for US$250 million debentures on or before 31 December 2014.

Investors or any subsequent debenture holders will not hold more than 5% of the conversion shares. If any debenture holder holding more than 5% after any conversion, they have to sell part of their shares in the open market or transfer the same to third parties to ensure their shareholding remain below 5%. Therefore, no substantial shareholders will be introduced to South Sea Petroleum.