First Australian Resources Raises $12.35 Million for Exploration

First Australian Resources reports that, following shareholder approval, the Company has allotted 95 million shares predominately to British, North American, Asian and domestic institutional clients of Hartleys Limited.

The Company is now fully funded for what will be a world class exploration program emanating from its Houston office, the highlights of which include:

  • A 3D seismic survey to be conducted on the Deep Water Offshore Senegal blocks to further refine the prospects and leads (including large turbidite fans) identified on reprocessed 2D seismic by JV partner Hunt Oil, a number of which are capable of hosting several hundreds of millions of barrels of oil;
  • Multiple wells to be drilled in the Gulf of Mexico including Offshore Galveston Bay (rig contracted for July 15, 2006) and Lake Long Deep;
  • Gas plays at Kakwa (now testing) and Clear Hills in Alberta, Canada, where gas has already been discovered in both projects; and
  • Offshore China where the Joint Venture has announced an oil discovery that is undergoing testing over multiple zones in the Wei 6-12-South wildcat well.

Commenting on the placement, Executive Chairman Michael Evans said:
“FAR has now secured a class of shareholder that can match the company’s growth ambitions. The ability of FAR to attract this level of support reflects not only its maturing status as an oil and gas producer and explorer but also the high caliber of its exploration portfolio, particularly China, West Africa and North America. ”