Africa-focused Pancontinental Oil & Gas NL (Pancontinental, the Company) disclosed Friday that it has completed a bookbuild 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”.
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