Camac Energy Raises $20.5 Million to Fund Oyo Field Intervention Offshore Nigeria
CAMAC Energy Inc., a U.S.-based energy company engaged in the exploration, development and production of oil and gas, today announced that the Company has entered into definitive agreements dated December 21, 2010 with certain accredited investors (the “Investors”) to sell in a registered direct offering an aggregate of approximately 9.32 million shares of its common stock at a price of $2.20 per share, and five-year warrants to purchase up to approximately 4.66 million shares of common stock with an initial exercise price of $2.20 per share, exercisable immediately.
Thirty days after the closing date, the exercise price of the Warrants will increase to $2.62 per share for the remainder of the term of the Warrants. CAMAC Energy will receive aggregate gross proceeds of approximately $20.5 million from the offering before deducting offering fees and expenses. The offering is expected to close on or around December 27, 2010, subject to customary closing conditions.
The Company plans to use the net proceeds from the offering to fund a portion of the cost of an intervention with respect to a well in the Oyo Field. The Oyo Field is an oil field offshore Nigeria in which the Company holds certain contractual interests. The intervention will involve identifying the location of unwanted gas entry into the wellbore and pumping a chemical sealant to block the flow of gas in order to increase the well’s oil production.
Rodman & Renshaw, LLC, a wholly owned subsidiary of Rodman & Renshaw Capital Group, Inc. , acted as the Company’s exclusive placement agent in connection with the offering.
About CAMAC Energy Inc.
CAMAC Energy Inc. is a U.S.-based energy company engaged in the exploration, development and production of oil and gas. The Company focuses on early cash flow and high-return global energy projects and currently has operations in Nigeria and, through its Pacific Asia Petroleum subsidiaries, in China. The Company’s principal assets include interests in the Oyo Oilfield, an offshore oil asset in deepwater Nigeria that started production in December 2009, a 100% interest in the Zijinshan Block gas asset located in the Shanxi Province, China, and the Enhanced Oil Recovery and Production business in Northern China. The Company was founded in 2005 and has offices in Hartsdale, New York, Houston, Texas, Beijing, China, and Lagos, Nigeria.
Source: Camac Energy, December 24, 2010;