Exploration & Production | Finance & Investing | Capital Markets
Longreach Plans Sidi Moktar Well with Latest Financing
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Longreach Oil and Gas Limited has announced that it has closed today a non-brokered private placement of units with investors for aggregate gross proceeds to the Company of $9,700,000.
The subscription price per unit was $1,000 and each unit consisted of one 10% secured convertible debenture of the Company in the principal amount of $1,000 (collectively, the "Debentures") and 1,000 ordinary share purchase warrants (collectively, the "Warrants").
Net proceeds of the Private Placement will be used to support the ongoing drilling of the Company's Kamar well at Sidi Moktar and for general corporate and administrative purposes. The completion of the Private Placement (described initially in the Company's press release dated March 3, 2014) will permit the Company to continue with its contracted drilling activities of the Kamar well at Sidi Moktar.
The Company intends to refinance or repay the indebtedness under the Debentures through the proceeds of a subsequent public or private offering of equity securities, which may include a rights offering to all shareholders of the Company.