Africa-focused Pancontinental raises $1.6m in new shares to fund operations

*Pancontinental Oil & Gas NL.

*Pancontinental Oil & Gas NL.

04 December 2015, Sweetcrude, Houston – Africa-focused Pancontinental Oil & Gas NL (Pancontinental, the Company) disclosed Friday that it has completed a book-build for a placement to sophisticated and professional investors to raise up to $879,800 (AUD 1.2 million) through the issue of up to 300 million fully paid ordinary shares in the Company (Shares) at an issue price of $0.0029 (AUD 0.004) per Share (the Placement).

In addition to the Placement, the Board of Pancontinental has also resolved to offer eligible shareholders the opportunity to participate in a Share Purchase Plan (SPP) to raise up to $733,200 (AUD 1 million) (see Share Purchase Plan Details below).

Funds raised pursuant to the Placement will be used in conjunction with existing cash, for costs associated with the potential sale of a part interest in Namibia EL0037, other farm out costs, business development and for general working capital purposes and other payables (circa $293,280 or AUD 400,000 to BG Group).

Commenting on the Placement, Pancontinental CEO Barry Rushworth stated:

“The key focus for Pancontinental at the current time is our Offshore Namibian Project – EL0037. Successful 3D and 2D seismic programs have recently been completed and processed at a cost to farminee Tullow Oil in excess of $30 million.”

“Tullow Oil is itself negotiating with a potential farminee for drilling in EL0037 and by end-March 2016 Tullow Oil needs to exercise its option to drill, following which Pancontinental would be free carried on a well with no caps.”

“Given the quality and the value of the exploration undertaken to date and the considerable potential for oil in a number of prospects, Pancontinental is confident a decision to drill will be forthcoming and this will be of considerable value to PCL’s healthy free carried 30 percent position in EL0037”.

“Pancontinental is also seeking to farm down part of its 30 percent interest for cash. The current Placement and SPP strengthens Pancontinental’s position as we embark on a very important few months for the Company.”

Hartleys Limited acted as Broker to the Offer in respect of the Placement and SPP.

Settlement of the placement for up to 177.5 million Shares is scheduled for Friday, Dec. 11 and is not subject to shareholder approval. This part of the Placement falls within the Company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A.

Subject to shareholder approval, Directors of Pancontinental have committed to subscribe for $366,600 (AUD 500,000) in the Placement. The Company anticipates that it will seek such shareholder approval at a general meeting in early January 2016.

In order to provide all eligible Shareholders of the Company with the ability to participate in this capital raising, the Company is undertaking a Share Purchase Plan (SPP) to raise up to $733,200 (AUD 1 million), with the company reserving the right to raise more than this amount.

The SPP will enable eligible shareholders, irrespective of the number of Shares which they hold in the Company, to purchase up to $10,996 (AUD 15,000) worth of new Shares directly from the Company. The Company proceeding with the SPP is conditional upon the ASX granting a waiver (which the Company expects will be forthcoming) from the operation of Listing Rules 7.1 and 10.11 so that the issue price of Shares under the SPP can be at the same price as the Placement (being $0.0029 or AUD 0.004 cents per Share). If the ASX waiver is not granted, the Company reserves the right not to proceed with the SPP or to proceed with it on amended terms. The Company will inform shareholders of the outcome of the waiver application and the status of the SPP in due course.
*Pancontinental OIl & Gas NL – Press release

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