Petsec plans $39.6m capital raising

OVERSEAS-focused explorer and producer Petsec Energy today announced a share placement of 11.5 million shares to international and Australian investors at $A2.40 per share, and a partially underwritten shareholder share purchase plan, also at $2.40/share.
Petsec plans $39.6m capital raising Petsec plans $39.6m capital raising Petsec plans $39.6m capital raising Petsec plans $39.6m capital raising Petsec plans $39.6m capital raising

This will raise a minimum of $39.6 million for the company’s 2007 exploration and development program in China and the Gulf of Mexico.

The shareholder share purchase plan offers all eligible shareholders the right to purchase up to a maximum of 2083 additional shares to the value of $5000.

BBY Limited managed the placement and partially underwrote the SSPP.

This capital raising follows Petsec’s decision to participate in 14-20 wells next year.

This program is a significant increase on the nine wells drilled in 2006 and will expose the company to potential reserve additions in excess of 60 billion cubic feet equivalent (Bcfe), according to Petsec.

Drilling in the Gulf of Mexico is expected to start early in the new year.

The funding will used on the following projects:

  • Mobile Bay, Gulf of Mexico – the development of gas discoveries made in the recently completed three-well drilling program at Mobile Bay;
  • Moonshine, onshore Louisiana – drilling seven to nine wells in 2007. The Moonshine Project covers about 60,000 acres (24,281 hectares) in a highly productive area that has produced over 340Bcfe and 7 million barrels (MMbbl) of oil;
  • Gulf of Mexico, USA – an exploration program of five to seven wells starting in the first quarter of 2007; and
  • Wei 6-12 South, China – an oil development plan and pre-development work on the Roc Oil-operated 6.12 south oil field discovered in May. This discovery is estimated to contain 70-100MMbbl of oil-in-place with a recovery rate ranging between 30% and 50% (Petsec’s net interest is 12.5%). A drilling program of two to four wells is planned in the second half of 2007 targeting additional reserves of 2.5-4MMbbl of oil net to Petsec.
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