- Sacgasco (SGC) raises $2.91 million via a share placement to buy well equipment for two wells planned to be drilled this year at its Nandino petroleum prospect in the Philippines
- The placement sees the issue of 116.7 million new Sacgasco shares to sophisticated investors at an issue price of 2.5 cents each
- The company says joint venture (JV) partner Blue Sky International, which will fund the drilling of Nandino as part of a farm-in agreement, has participated in the capital raise as a cornerstone investor
- Sacgasco says the funds raised willl be used primarily to accelerate drilling preparations by allowing it to award key contracts for drilling and production equipment for the planned two-well drilling campaign
- SGC shares down 3.45 per cent to 2.8 cents
Sacgasco (SGC) has raised $2.91 million via a share placement to buy well equipment for two wells planned to be drilled this year at the joint ventured Nandino petroleum prospect in the Philippines.
The placement saw the issue of 116.7 million new Sacgasco shares to sophisticated investors at an issue price of 2.5 cents each.
The company said joint venture (JV) partner Blue Sky International, which will fund the drilling of Nandino as part of a farm-in agreement, participated in the capital raise as a cornerstone investor.
The Blue Sky farm-in relates to Service Contract 54 (SC54) and the JV plans to drill the Nandino wells subject to Philippine Department of Energy (DOE) approval and rig availability.
“The fundraising including the participation of shareholder and farm-in participant of the calibre of Blue Sky aligns the JV interests in delivering early activity and results in the Philippines in 2022,” Sacgasco Managing Director Gary Jeffery said.
“Blue Sky is an international operator of note with some 6,500 boepd of operated gross oil and gas production (approximately 4,300 boepd net to Blue Sky entities).
“Blue Sky has significant operating experience in diverse jurisdictions from onshore North America to offshore Indonesia.”
Sacgasco said the funds raised would be used primarily to accelerate drilling preparations by allowing wholly owned subsidiary Nido Petroleum Philippines to award key contracts for drilling and production equipment for the two-well drilling campaign planned at Nandino and Cadlao.
SGC shares were down 3.45 per cent to 2.8 cents at 2:37 pm AEST.