CBM Asia receives exploration funding offers
Tuesday, April 2 2013 - 02:40 AM WIB
CBM Asia Development Corp. said on Monday that it has received preliminary offers from institutional investors and regional oil & gas companies for multi-year financing structures that would fund exploration phases of its coal bed methane in Indonesia.
The Company said in a press statement on Monday that it is currently conducting the respective due diligence and expects the process to take several more weeks to be concluded.
The management team and the Board of Directors are evaluating the terms and conditions of each offer and will make further announcements in due course.
Previously, CBM Asia Development Corp. announced on 6th March this year that it has planned a non-brokered private placement of up to 71,428,572 shares at a price of C$0.21 per share for gross proceeds of up to C$15 million.
The net proceeds of the offering will be used, among others, to fund the company's pilot production and/or exploration and development costs on its coal bed methane projects in Indonesia, pay ongoing general and administrative expenses and for unallocated working capital.
A cash finder's fee of up to 6 percent of the gross proceeds of the offering may be paid to eligible dealers and finders.
The offering is subject to the acceptance of the TSX Venture Exchange and is anticipated to close on or about March 29, 2013. All securities to be issued pursuant of the offering will be subject to a hold period of 4 months and 1 day.
"Resource appraisers from Netherland, Sewell and Associates, Inc. (NSAI) and CBM completion engineers from Advanced Resources International, Inc. (ARI) are conducting their detailed assessments of the Barito Basin CBM blocks in preparation for the company's drilling projects later this year,? states Al Charuk, President and CEO of CBM Asia.
He said that the funds raised from this private placement will be invested directly into the Barito Basin and Central Sumatra Basin production drilling with the goal of achieving first production by year-end, a critical milestone for CBM Asia. ?An MOU to sell gas from the Barito Blocks has already been signed," he said.
Editing by Benget Besalicto Tnb.