Avery has exercised its option to farm-in on the OMV Timor Sea project as described in earlier releases. Avery’s farm-in option allows the company to earn a 10 percent interest in the project.
The operator, OMV (Australia) has informed Avery that the rig “Ocean Bounty” has completed the last of its wells in the Taranaki Basin and was handed over to OMV on September 7, 2004. The rig is estimated to take about 10 days to get to Australian waters and commence work in the Gippsland area (for OMV). The operator’s estimate of the spud date of Katandra-1 is currently late the first week of November.
Avery also announces that the company has completed the first tranche of an offering of up to 2,181,820 units (“Units”) by the sale of 660,962 Units at $0.55 per Unit pursuant to a private placement raising gross proceeds of $363,529.10. Each Unit consists of two common shares and one common share purchase warrant. Each warrant shall entitle the holder thereof to acquire one additional common share at a price of $0.60 per common share for a period expiring 18 months from the date on which the warrant is issued, subject to certain restrictions.
Dominick & Dominick Securities Inc. acted as agent for the Offering and received a cash commission 8% of the gross proceeds received by Avery from the sale of Units and an option to purchase 132,192 common shares, representing its proportionate interest in an agent’s option to purchase 10% of the common shares sold exercisable at a price of $0.275 per common share for a period of 18 months from the date of closing of the Offering.
The funds raised will be used to advance projects in Australia, primarily the Katandra Timor Sea OMV joint venture offshore northwest Australia, as well as for working capital necessary to implement Avery’s growth strategy.
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