Pancontinental Energy (ASX:PCL) raises $2m for PEL 87

• Pancontinental Energy (PCL) raises $2 million through a placement to fund exploration activities and business development
• The company issued 400 million new shares at a price of 0.5 cents each, representing a 16.7 per cent discount from PCL’s closing price on Tuesday
• The funds will mostly be directed towards its operations offshore Namibia, but will also be used for working capital
• With licence renewal issues flagged at PEL 37 in the Walvis basin, the company will mostly be focussing activities at PEL 87 in the Orange Basin
• Shares are trading in the grey at 0.6 cents each at 1:29 pm AEST

Pancontinental Energy (PCL) has raised $2 million through a placement to fund exploration activities and business development.

The company issued 400 million new shares at a price of 0.5 cents each, representing a 16.7 per cent discount from PCL’s closing price on Tuesday.

The funds will mostly be directed towards its operations offshore Namibia, but will also be used for working capital.

With licence renewal issues flagged at PEL 37 in the Walvis basin, the company will mostly be focussing activities at PEL 87 in the Orange Basin.

The licence renewal challenge follows the withdrawal of joint venture partner Tullow, with the company being unable to reach an agreement with its remaining joint venture partner.

The Ministry has warned it will not consider the licence extension until the parties are in alignment.

Shares were trading in the grey at 0.6 cents each at 1:29 pm AEST.