HARDMAN Resources has announced the completion of its $167.8 million capital raising, following the settlement of the UK tranche of the entitlement issue shortfall.
The capital raising, of 152,615,129 shares in total, consisted of a $A79.2 million placement of 72,000,000 ordinary shares in the company at $1.10 a share, which was completed on the 21st March, and an $A88.4 non-renounceable entitlement issue of $1.10 a share that had a 91.12 per cent take up.
The entitlement issue was offered to existing shareholders on the basis of one new share for every six shares held.
Woodside Mauritania Investments Pty Ltd undertook to participate in the placement and take up its entitlement in the entitlement issue in order to maintain its percentage holding in the company.
Hardman Resources is a participant in the Woodside operated Chinguetti Oil Field joint venture at Mauritania (Chinguetti-1). Since the first oil discovery in May 2001 at Chinguetti-1, Hardman has participated in successful appraisal and drilling programs in 2002 and 2003, which led to the field being declared commercial in January 2004.
With the final investment decision expected in mid 2004, production is expected from late 2005 or early 2006, at an initial rate of 75,000 barrels of oil a day, of which Hardman’s share would be 16,200 bopd. Industry analysts are increasingly viewing offshore Mauritania as a new West African petroleum province, with the boundaries not yet established.