Bass Oil has successfully arranged a AU$0.15 million private placement to sophisticated and professional investors through the issue of New Shares at AU$0.002 (0.2 cents) per share, representing a discount of approximately 33 per cent to the last closing price of AU$0.003 and a 10 per cent discount to the five-day volume weighted average price (VWAP).
In parallel, the Company also announced an approximate AU$2.7 million pro rata non-renounceable entitlement offer of new shares on a one for two basis, at an issue price of AU$0.002 (0.2 cents) per share. The Rights Issue includes a one for two free attaching option exercisable at AU$0.004 on or before 30 July 2021.
The Company stated that funds from the Placement and Rights Issue will be used for repayment of Cooper borrowings AU$770,000 by 31 July 2019; drilling of up to two low risk Bunian development wells, one in October 2019 and the second in October 2020; and business development initiatives, joint studies, acreage release applications and bilateral negotiations.
Funds raised will enable Bass to expand its onshore Indonesian oil production footprint through value-accretive acquisitions.
Managing Director, Tino Guglielmo has said that Bass was entering an exciting phase in its history.
“We are looking at shortly completing the procurement process to secure a drilling rig to spud the Bunian 5 well, expected in October of this year,” said Mr Guglielmo.
“This well is expected to double field production capacity, up from 700 barrels of oil per day (bopd) to facility limits of approximately 1,400 bopd.
“Our business development initiatives are progressing well with the Company in detailed evaluation on a number of opportunities as well as progressing technical and commercial discussions on the short-listed opportunities,” concluded Mr Guglielmo.
The Company has also confirmed that after completion of the final payment of the deferred consideration, Bass will own outright its 55 per cent interest in the Tangai-Sukananti producing property.