1 December 2011, Sweetcrude, Melbourne – Australia-listed Pancontinental Oil & Gas plans to raise A$15 million (US$15.3 million) through a share placement to fund its exploration activities in Africa.
Pancontinental is floating up to 200 million shares in the placement at an issue price of A$0.075 cents per share.
“We are pleased by the outstandingly strong support received for the placement, which will see the entry of several of the world’s largest and most well respected institutional investors on the Pancontinental share register,” chief executive officer, Barry Rushworth, said.
“The strength of interest in the placement will ensure Pancontinental is well funded for exploration activities in its African licences in what we believe will be a transformational year as we look forward to, amongst other activities, drilling on the gian Mbawa prospect.”
The company will use the money to fund its share of seismic programs off Kenya over L10A and L10B, where it holds a 15% stake, and L6, where it holds a 40% interest.
It will also use the funds for a seismic programme over EL 37, off Namibia, where it holds an 85% working interest as well as to “pursue other growth opportunities” and for general working capital.
The placement will be carried out in two tranches with up to 99.1 million shares being offered in the first tranche and up to 100.9 million in the second, subject to shareholder approval.