GeoPark Places Shares to Raise Funds for Chilean Work
GeoPark Holdings Limited, the Latin American oil and gas exploration and production company with producing properties in Chile and Argentina, announced that 3,080,000 new ordinary shares of U.S. $0.001 each have been placed at a price of 394 pence per share, conditional, inter alia, on admission to trading on the AIM market of the London Stock Exchange plc, which is expected to occur on May 14, 2008.
Included in the placing were a new strategic block of Chilean investors and pension funds, the International Finance Corporation of the World Bank, and certain London institutional investors. The Placing, which was limited to 10% of the current issued share capital of the company, was significantly oversubscribed.
The gross proceeds of the Placing of approximately U.S. $24 million will be used principally to fund the acquisition and work program for the company's farm-in on the new Tranquilo block in Chile (when approved); and accelerate the investment program on the company's Fell Block in Chile.
GEOPARKâ€™s work and investment program for 2008 is budgeted for US$57 million and will include drilling 17-20 new wells with a balanced objective of increasing both oil and gas production and oil and gas reserves.
"We are pleased with the encouraging level of demand generated by the Placing and the continuing confidence in the Company exhibited by the international investment community," Gerald E. O'Shaughnessy, Chairman of GEOPARK, said. "Notable in the Placement is the participation by a new group of strategic Chilean investors, whose participation represents an important milestone for the Company by providing an important new investor base which will support future growth in the region in which we operate. We also appreciate the continuing support received from the IFC which has proven to be an important shareholder, lender and counselor for the Company."
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