Australias African Petroleum Corporation is looking to raise US$261mn through a share placement to fund its exploration activities in Africa
African Petroleum said it had received firm commitments from institutions and "sophisticated investors” for the placement of 250mn shares at US$1.05 each.
"We are delighted with the tremendous support we have received for this oversubscribed placing, from a broad range of high quality blue chip institutional investors in Australia, Canada, the UK and the USA,” non-executive chairman Frank Timis said.
“This is a major endorsement of African Petroleum’s management, business and prospects and will enable the company to continue to build on our strategy of becoming West Africa’s largest independent oil and gas exploration and development company."
Wells and land
African Petroleum said it would use the funds raised to drill up to four wells, purchase acreage off the coast of West Africa and to gain additional 3D seismic, in particular covering Block SL-03 off Sierra Leone.
The placement will be carried out in two tranches with 193mn shares being issued within the company’s annual 15 per cent capacity on 21 April.
The remaining 57mn shares will be issued upon receipt of shareholder approval which the company will seek at its annual general meeting next month.
