West Perth oil and gas exploration company Otto Energy Ltd will earn $2.6 million through a placement to fund capital expenditure and acceleration of exploration on its Philippines oil and gas assets.
The full text of a company announcement is pasted below
The Board of Otto Energy Ltd is pleased to announce that it has arranged a strategic placement of 16,300,000 Shares to be issued at price of $0.16 per share to raise $2.6 million. The shares will be subject to a private escrow agreement for a period of 12 months.
The placement is to two specialist Swiss managed oil & gas investment funds and forms the basis for a long term relationship. The funds have strong banking links in Europe that will be of value to Otto in the future, the relationship also brings supportive links to our activities in the Philippines. Their confidence in Otto to progress to the status of oil & gas producer with in the next 12 months supports the board's expectations.
The capital raising is being managed by Max Capital Pty Ltd and is scheduled to be completed on or about 15 March 2007.
The proceeds of the placement will be used for capital expenditure and acceleration of the exploration program on the Company's Philippines oil and gas assets, appraisal and development of the Company's Turkish gas assets, pre-drilling planning on the Company's Argentina exploration project, and working capital.