Australian oil and gas explorer FAR Ltd has announced an equity raising placement which is expected to raise $8 million before expenses.
The placement is being undertaken to fund further exploration in offshore Kenya potentially including accelerating the evaluation of the Miocene reef oil play offshore Kenya in which the company has a significant acreage position and for general working capital purposes.
FAR has a 60% equity position and operates block L-6 and a 30% equity position in the L-9 block. Both blocks are located in the highly prospective East African margin in the Lamu Basin, Kenya.
The placement of a total of 200,000,000 new ordinary shares in the Company (“Ordinary Shares”) will raise $8 million before expenses.
The price per new share offered under the Placement of A$0.04 per new share represents a 15% discount to the Company’s current market price on the ASX and a 10% discount to the 30-day volume weighted average price on the ASX.
FAR’s Managing Director, Ms Cath Norman, said, “FAR is pleased to have raised money to allow the company to move forward our key position in Kenya in the short term. Building our portfolio of opportunities for our shareholders is key to our strategy and we aim to deliver a high impact drilling program in Kenya following on from the current drilling program offshore Senegal.”
Upon completion of the Placement, the Placement Shares will represent approximately 7.4% of the enlarged share capital of the Company and the Company will have 2,699,846,742 Ordinary Shares on issue. The Placement Shares will, when issued, rank equally in all respects with the existing Ordinary Shares. Application will be made to the ASX for the Placement Shares to be admitted to be quoted on the ASX. Settlement of the Placement Shares are expected to occur Friday 6 June 2014 with normal trading to occur Tuesday 10 June 2014.