The Australian-listed Pancontinental Oil & Gas NL announced December 4 that it has completed a bookbuild for a placement to raise up to $1.2 million.
The company will issue of up to 300 million fully paid ordinary shares at an issue price of 0.4 cents per share.
In addition to this, 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 $1 million.
The company said it would use the raised funds 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.
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 programmes have recently been completed and processed at a cost to farminee Tullow Oil in excess of US$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.”
The company’s CEO also said that Pancontinental was seeking to farm down part of its free carried 30% interest in the Petroleum Exploration License 37 for cash.
Apart from Namibia, Pancontinental has a 40% interest in the Kenyan offshore portion of Licence L6 and a 16% free carried interest in the onshore portion of Block L6.