Heritage Oil Raises $181 Million through Equity Placing
Heritage Oil has closed its previously announced equity offering of common shares of the Company. At closing, a total of 3,000,000 Common Shares were issued from treasury at a price of CAD $60.50 per Common Share for gross proceeds of CAD $181.5 million to the Company. In addition, Albion Energy Limited sold 3,000,000 Common Shares at a price of CAD $60.50 per Common Share for gross proceeds of CAD $181.5 million. The ultimate owner of Albion Energy is a discretionary trust, a potential beneficiary of which is Mr. Anthony Buckingham, a Director and Chief Executive Officer of the Company.
Net proceeds to the Company from the issue, when combined with existing cash and cash equivalents will total approximately US $230 million, which will be used to fund ongoing exploration and development activities as well as for general working capital purposes during the next two years. More specifically, the net proceeds will allow the Company to pursue more aggressively some of its high-impact opportunities as well as continue the development of its interests in producing fields in Oman and Russia. Such opportunities include:
- Accelerating the exploration and potential subsequent development of the Company's existing assets, notably in Uganda and the Kurdistan region of Iraq;
- Continuing the development of the Company's existing assets in Oman and Russia; and
- Acquiring additional assets in the Company's core areas of Africa, the Middle East and Russia and in new countries.
Mr. Tony Buckingham, CEO, stated:
"We consider this equity financing to be a turning point in the development of the Company, allowing it to accelerate work programs as well as providing flexibility to expand the existing portfolio of assets. The strong equity backing of Heritage is a testament to the Company's existing portfolio and management team."
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