FAR to Raise USD 15 mln for Exploration Offshore Kenya

FAR Ltd plans to raise $15.04 million, to fund offshore oil and gas exploration in East Africa off the Kenya coast. The funds will be raised through a placement of 280 million shares at 4.3 cents per share to raise up to $12.04 million and a Share Purchase Plan of up to $3 million to existing shareholders.

The placement is being made predominantly to international and domestic institutional clients of Hartleys Limited, broker to the offer. A total of approximately 70 million shares at 4.3 cents per share will be offered under the SPP to eligible shareholders registered at 28 March 2012, with SPP documentation to be sent to eligible shareholders shortly. The SPP will open on Monday 2 April 2012 and close on Friday 13 April 2012. The capital raising will allow FAR to maintain its equity interest in Kenyan Block L6 and Block L9, close to a string of recent major offshore gas discoveries.

FAR’s managing director Cath Norman said “We were overwhelmed by the support shown for the placement. We received offers for a multiple of the money we sought to raise, which shows the interest that is building in the East African oil and gas province.”

“FAR is one of the early movers in East Africa and has accumulated an enormous acreage position in prime exploration areas.”

“I am confident that the rewards from several years of hard work in this area will now start to flow to shareholders,” said Ms Norman.

“Shell’s recent takeover offer for a leading junior East African player, Cove Energy, which was subsequently overbid by the Thai company PTTEP demonstrates the accelerating global interest that is in this region. Adding to this excitement are the recent offshore gas discoveries by companies such as BG, ENI Spa, Anadarko Petroleum Corp, Statoil, ExxonMobil and Ophir Energy off the coasts of Mozambique and Tanzania.”

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Source: FAR Ltd, March 29, 2012