To fund this work program Innamincka Petroleum Limited ("INP" or "the Company") is pleased to announce that it has resolved to carry out a Capital Raising Program ("the Program") to raise up to $15 million.
The funds raised from the Program will enable the Company to work toward its immediate goal of bringing the Flax Oil Field into production. Additional objectives include drilling the saddle between the Flax and Juniper Oil Fields and to initiate exploration of ATP 543P South with new joint venturer Santos Limited.
The Program will be divided into two tranches being a shareholder Share Purchase Plan ("SPP") and an offering under a transaction specific prospectus ("Prospectus Offer") targeted to be lodged in the third week of March 2007.
The SPP will seek to raise up to a maximum of $5 million and will invite those existing shareholders at the Record Date to subscribe for up to a maximum of $5,000 worth of INP shares at an Issue Price being:
The Prospectus Offer will offer the full amount of the Program being $15 million, enabling any shortfall from the SPP to be raised under the Prospectus (the ultimate number of shares allotted under the Prospectus Offer will be determined by the size of the take up from the SPP) but the entire Program will not raise more than $15 million.
The Prospectus Offer will invite existing and new shareholders to subscribe for shares under the Program at a price being:
It is intended that the Issue Price of the shares under the SPP and the Issue Price of the shares offered under the Prospectus will be the same price.
Commenting on the Program, Chairman Mr Adam Johnson said "This capital raising aims to bring the Flax Oilfield into production. It will provide existing loyal shareholders the opportunity to participate, and enable the Company to introduce its exciting projects to potential new wholesale and retail investors."
Application of Funds
The funds from the Program will enable the Company to execute its short to medium term objectives pursuant to its business plan, including to carry out Phase 1 of the 2007 Work Program, retire some debt and make a contribution to working capital as described below.
Proposed Application of Funds Amount ($) assuming Maxim Subscription Raised from Program Phase 1 development of the $5.75m Flax Oil Field Drilling the saddle between the Flax $1.50m and Juniper Oil Fields to test the possibility that Flax and juniper are connected. ATP 543P South Exploration $0.75m Working Capital $1.90m Repayment of Debt $4.00m Costs of the Capital Raising Program $1.10m TOTAL $15.00m
Next Steps and Key Dates
The Company will need to undertake a number of corporate activities to successfully complete the Program including the following:
1. Issue SPP Documentation; 2. Convene a meeting of shareholders to seek approval for certain resolutions associated with the Program; and 3. Lodge the Prospectus.
Set out below is an indicative timetable of key dates, the Company notes these dates are subject to change and the Company will keep the market fully informed as to the timing of the relevant events.
Activity Indicative Date Lodge SPP Documentation 27 Feb 2007 Record Date SPP 27 Feb 2007 SPP Closing Date 20 March 2007 Hold General Meeting of 26 March 2007 Shareholders Lodge Prospectus 26 March 2007 Close Prospectus 11 April 2007
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