08/11/2007 - 12:45

Backreef extends IPO closing date after low capital raising

08/11/2007 - 12:45

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North Perth-based Backreef Resources Ltd has issued a supplementary prospectus extending the closing date of its initial public offer to January 31 2008 after failing to raise sufficient funds during its initial offer period.

North Perth-based Backreef Resources Ltd has issued a supplementary prospectus extending the closing date of its initial public offer to January 31 2008 after failing to raise sufficient funds during its initial offer period.

The company aimed to raise $8 million through the issue of 40 million shares at 20 cents each by September 12, to raise capital to fund exploration of the Selene oil prospect in the Canning Basin.

Backreef also made a priority offer of up to 5 million shares to shareholders of Oil Basins Ltd.

To date the company has received applications for 1.5 million shares, worth 293,000.

However, Backreef said in today's supplementary prospectus that a number of existing and potential gas consumers had expressed an interest in funding exploration of the prospects, and it was this interest that had encouraged them to extend the raising period.

In its July prospectus, the company said it had also negotiated farmin agreements to two blocks in the Yagga Yagga area of the southeast Canning Basin, contingent upon the granting of the permits containing these blocks.

Upon completion of the farmins, the Company will retain a 50 per cent interest in each of these blocks in the Yagga Yagga area, with a 30 per cent stake in Selene.

Backreef is chaired by David Archibald, who is joined on the board by Robert Arendts, George Morris and Rodney Illingworth. Jay Stephenson is company secretary.

Wolfstar Group Pty Ltd was corporate adviser for the group, while Pendragon Capital served as investigating accountant. Steinepreis Paganin served as company secretary.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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