Quest Petroleum announced its intention to raise $5 million to fund the initial drilling program at its south Sumatra Ranau oil & gas projects .
Half the capital will be raised from the placement of 417 million ordinary shares and the other half from an entitlement issue to its existing shareholders.
The ordinary shares will be released in two tranches with the first comprising approximately 200 million shares at 0.6 cents each, to be issued within the week, and the second comprising roughly 217 million shares which awaits shareholder approval at a general meeting in five weeks.
Existing shareholders will be eligible to take part in the capital raising on the same terms as the ordinary share placement, an entitlement offer of just under 417 million shares will made available to them at the same price of $0.006 a share.
Quest Chairman Gus Simpson said “the company is pleased with the positive response received for the placement and is now moving toward the commencement of drilling at Ranau".
“We have identified three drill locations within the Jaya sub‐basin and are optimistic about the potential for a significant hydrocarbon discovery within the area.”
