Peak to raise A$1.9m via rights issue to fund South Block A PSC
Friday, January 3 2014 - 04:27 AM WIB
ASX-listed Peak Oil & Gas Limited invited on Friday investors to participate in a rights issue to raise up to approximately A$1.9 million (before costs).
The company said in a statement that proceeds from the offer will be used to fund Peak?s exploration commitments in the South Block A Production Sharing Contract in North Sumatra, and for working capital purposes.
It said that the pro-rata non-renounceable rights issue is fully underwritten by Octanex N.L, which is a company listed on ASX (OXX), and which is associated with Peak?s Chairman, E G Albers.
The company added that all of its board members intend to take up their respective entitlements in full. ?Your Directors consider that the Rights Issue provides an opportunity to further participate in Peak?s future growth,? it said.
Peak holds an effective 38.25 percent interest in the South Block A (SBA) PSC, which is operated by Renco Elang Energy Pte Ltd (REE), a company controlled by Peak, with a 51 percent interest. Other Peak?s partners in SBA are KRX Energy Pte Ltd (KRX) and PT Prosys Oil & Gas.
The SBA PSC is located in the prolific North Sumatra Basin in close proximity to established pipelines and facilities. It contains proven hydrocarbons with gas and oil flows from old wells. Historical exploration in SBA focused on shallow oil targets. The new phase of exploration is targeting large scale wet gas driven by significant energy shortages and high gas prices in the rapidly expanding economy of the region, while overlooked high quality shallow oil remains an attractive target.
Editing by Reiner Simanjuntak