Baraka to raise $12m in placement for exploration

West Perth-based oil and gas exploration company Baraka Petroleum aims to raise $12 million to develop current and pursue new oil and gas opportunities.

Issuing 60 million shares at 20c each, the company will also issue one option for every two shares bought, exercisable at 25c.

Commonwealth Securities Ltd has underwritten 50 million new shares and 25 million options, for a total value of $10 million.

Baraka also engaged the Royal Bank of Canada as lead manager for a placement worth up to $35 million in May this year.

The full text of a statement from the company is pasted below
Australian based oil & gas exploration company Baraka Petroleum Limited has lodged a Prospectus with ASIC and ASX for the issue of up to 60 million shares at an issue price of 20c per share, to raise up to $12, million with one New Option attaching to every two New Shares. The New Options will be exercisable by 30 September 2008 at $0.25 per share.

Commonwealth Securities Limited has underwritten the issue to the extent of 50,000,000 New Shares and 25,000,000 New Options for a total of $10,000,000, under an offer to the Public closing on 20 September 2006.

Existing Shareholders will be given the opportunity to subscribe for up to 10,000,000 New Shares and 5,000,000 New Options under the offer to Shareholders, closing on 15 September 2006, to raise an additional $2,000,000 which is not underwritten.
Having substantially achieved the original objectives outlined at listing in May 2005, the proceeds from the capital raising will be applied to participation in the development of existing exploration properties and the pursuit of new oil & gas opportunities to achieve planned growth in the Company's investment portfolio.