PetroWorld to Raise $40 Million in Stock Offering
PetroWorld Corp. has engaged Orion Securities Inc. as its agent in respect of a public offering of up to US$40 million of its common shares on a best efforts basis. The distribution of the common shares is being qualified by a short form prospectus which has been filed in each of the Canadian provinces of British Columbia, Alberta and Ontario. The price of the common shares to be sold in the Offering will be agreed upon by PWC and Orion in the context of the market. In consideration for its services, Orion will receive a fee equal to 6% of the gross proceeds of the Offering. The proceeds of the Offering will be used, among other things, to further appraise and develop PWC's offshore assets in the Gulf of Thailand and to drill additional exploration wells in the areas adjacent to the onshore Phu Horm gas field in which PWC will be acquiring an indirect interest through its acquisition of NTL. The closing of the Offering is expected to take place concurrently with the closing of the Acquisitions. PWC's preliminary short form prospectus dated August 1, 2006, is available under PWC's profile at www.sedar.com.
As a result of the Acquisitions, the enlarged company will have a significant proven and probable reserve base confirmed by independent engineering reports completed by Petrotech Engineering Ltd. for the offshore assets and Gaffney, Cline & Associates for the onshore assets. Proven and probable reserves for the offshore G5/43 block will be approximately 15 million barrels. Onshore the Phu Horm gas field will provide PWC with a proven and probable reserve base of approximately 64 billion cubic feet of gas and contingent gas resources of approximately 1.2 trillion cubic feet of gas (high estimate). Development feasibility studies conducted by Oceanbridge Marine Pte. Limited are currently being completed for the offshore assets and PWC has recently entered into a Rig Sharing Memorandum of Understanding with Pearl Oil (Thailand) Limited to secure a rig for appraisal drilling to occur in early 2007.
PWC has also confirmed that it has exercised its drilling option over the Cobble Cuesta anticline exploration prospect in Nevada and drilling on the structure is due to commence in late August, 2006. PWC has revised its original agreement which enabled it to earn a 50% interest in the block in return for paying 90% of the drilling costs and will now pay 45% of the drilling costs in return for a 30% equity in the asset.
- PetroWorld Reports Net Loss for 2Q06 (Aug 30)
- PetroWorld to Raise $40 Million in Stock Offering (Aug 04)
- PetroWorld Seeking Shareholder Approval for NuCoastal Acquisition (Jul 28)