Pancontinental Oil & Gas plans to raise $15.3mn through a share placement to fund its exploration activities in Africa
Pancontinental will float up to 200mn 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 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 programmes off Kenya over L10A and L10B, where it holds a 15 per cent stake, and L6, where it holds a 40 per cent interest.
It will also use the funds for a seismic programme over EL 37, off Namibia, where it holds an 85 per cent 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 99.1mn shares being offered in the first tranche and up to 100.9mn in the second, subject to shareholder approval.