Kairiki Energy Limited announced that it has reached agreement to place up to 49,949,730 ordinary fully paid shares at $0.23 per share to raise gross funds of $11,488,438. The share placement to investors is being jointly managed by Patersons Securities Limited and Southern Cross Equities Limited. The funds will be used to fund Kairiki's Philippine's drilling program and for working capital purposes.
Kairiki also announced plans to expand its drilling program in Service Contract 54 (SC54) from one well to three wells. Kairiki and its Joint Venture partner Nido Petroleum Limited will drill at least two shallow water wells with a jack-up rig at the end of 2008, followed by drilling of the Gindara Prospect with a semi-submersible rig in 2009. The purpose of the capital raising is to assist in the funding of this accelerated drilling program that will form the basis of a larger scale program to be conducted over the next few years.
The share placement has enabled Kairiki to strengthen and diversify its institutional shareholder base through the introduction of new funds from Hong Kong, Switzerland and Australia.
The shares will be issued within the scope of Kariki's available share placement capacity under ASX Listing Rule 7.1. Settlement of the fundraising is anticipated to occur on June 23, 2008 with the quotation of the new shares expected on June 26, 2008. Upon quotation, Kairiki's total issued share capital is expected to be 399,614,597 shares.
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