Nuenco takes $600k in oversubscriptions

Subiaco-based junior oil and gas explorer Nuenco NL will receive oversubscriptions worth $600,000 to its recently completed $3 million placement, raising funds for its joint venture commitments.

The company announced last week it would acquire joint venture partner Maxin Investments Pty Ltd to increase its stake in the San Joaquin oil and gas joint venture to 50 per cent.

The full text of a company announcement is pasted below

Further to the Company's announcement on 20 April 2007 confirming it will raise $3,010,000 through a placement of 21,500,000 shares (with 21,500,000 free attaching options) to sophisticated investors at 14 cents each, the Company has subsequently received oversubscriptions for the placement of an additional 4,367,500 shares at 14 cents each (with 4,367,500 free attaching options) totalling $611,450.

The Directors have resolved to accept these oversubscriptions, with the allotment of the oversubscription shares and options subject to shareholder approval at the Company's next general meeting.

The additional funds raised from the oversubscriptions will be used to:

• fund the ongoing joint venture commitments associated with South East Lost Hills;
• fund Nuenco's growing interest in the San Joaquin Joint Venture which will increase from 25% to 50% following shareholder approval of the Maxin acquisition; and
• augment existing working capital.

The Company is finalising its Notice of Meeting and is planning to hold a General Meeting of shareholders as soon as possible to approve the acquisition of Maxin Investments Pty Ltd, as announced on 21 May 2007, and to ratify and approve this placement in full.