Nido Raises A$11 Million in Share Placing
Nido Petroleum has successfully placed 39.6 million shares at $0.28 per share to a sophisticated investor in China, raising gross proceeds of A$11 million.
With Nido's seismic programs in Service Contracts 63, 58 and 54 due to commence in October 2007, Nido's primary purpose in raising the funds is to prepare for its subsequent exploration drilling campaign, due to commence in the fourth quarter of 2008 in Service Contract 54. In particular, Nido has undertaken to source long lead time items for the drilling operations. Funds will also be used for Nido's development activities and for general working capital.
Nido's Managing Director, David Whitby, said, "This fundraising will allow Nido to prepare for its drilling campaign, which is the next step in realizing the value of this world-class exploration acreage. It comes at a time of real growth and optimism in the Company. The placement with a sophisticated investor in China also allows us to further strengthen our strategic ties to Asia, which is where we see the future growth of our Company."
The shares issued under the placement rank equally with existing shares and fall within Nido's available share placement capacity for the purposes of ASX Listing Rule 7.1. Nido expects quotation of the shares to take place on 26 September 2007. Following quotation, Nido's total issued share capital will be 910,359,774 shares.
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