Further to Austral Pacific Energy Ltd.'s news releases of December 19, 2007 and February 11, 2008 announcing a US$15million placement, the Company now confirms that it has received the final tranche of $3.9 million and completed the placement. The financing involves the sale of 12,500,000 common (ordinary) shares with attached warrants, sold as units at $1.20 per unit. Each unit consists of one common share and one share purchase warrant.
The warrants are exercisable one-for-one into the Company's common shares for 12 months after closing at an exercise price of $2.25.
A portion of the securities were placed in the United States to accredited investors in reliance on Rule 506 and are subject to resale restrictions in the United States under Rule 144 for a one year period but can be traded under Rule 904 through the TSX Venture Exchange after 4 months which is the basic hold period applicable to all the securities.
The majority of the proceeds from the private placement are being used to accelerate the Cheal field development with a goal of increasing the field reserve base and increasing production through the newly commissioned Cheal Production Station. The proceeds will also fund other appraisal and development projects in Taranaki, New Zealand, and will be used to progress the Cardiff field appraisal.
The Company used part of the proceeds to pay the additional cash component of the previously announced purchase of a further interest in its Cardiff permit, by the purchase of all the shares of International Resource Management Corporation Limited, whose principal asset is a 19.8% interest in the Cardiff gas project (PMP 38156). -- www.cnxmarketlink.com
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