FAR Makes Placement to Raise Funds for Drilling Program

The Directors of First Australian Resources Limited reported that the Company has resolved to raise up to $4 million through the placement of up to 50 million shares at an issue price of 8 cents per share. Hartleys Limited is corporate advisor to FAR and is the Lead Manager to the Offer.

The Placement of new shares will be undertaken within the Company’s ASX Listing Rule 7.1 15% placement capacity.  In addition, and to allow all eligible shareholders to acquire up to $5,000 of FAR shares at the Placement price of 8 cents per share, the Company has resolved to undertake a Shareholder Purchase Plan.

The record date for the SPP is 5pm (WST) Friday, July 11, 2008. More information will be provided in the SPP offer letter which will be mailed to eligible shareholders in the week commencing Monday, July 14, 2008. The monies raised pursuant to the Placement and SPP will be applied to FAR’s exciting work program over the coming months, including:

  • Testing of the Stokes Bay-1 well which has potential reserves in excess of 200 BCF gas or 10million BBL oil;
  • Exploration drilling at NE Waller, Texas, where several prospects have been identified by FAR, targeting potential reserves in excess if 50BCFE;
  • The drilling of an exploration well at Lake Long, South Louisiana with potential reserves in excess of 150,000 BBL oil and 1BCF gas;
  • Farm-out marketing of the +1billion BBL oil potential Senegal project; and
  • Progression of development planning in the Beibu Gulf, Offshore China.