PERTH (miningweekly.com) – ASX-listed Nido Petroleum is hoping to raise up to A$31.9-million from a pro-rata renounceable rights offer to fund the drilling of its interest in the oil fields off the coast of the Philippines.
The renounceable entitlement offer will be conducted on an 11.2-for-1 basis, and will be priced at 6.5c a new share.
The offer price represents a 13.3% discount to Nido’s closing price on October 18, and a 22% discount to the company’s one-month volume-weighted average share price.
Major shareholder BCP Energy International, which holds an 81.25% majority share in Nido, has already said that it would take up its entitlement under the offer, representing A$25.9-million of the proceeds.
Besides funding Nido’s participating interest share of the drilling at the oil fields, scheduled to occur in the first quarter of next year, the funds will also provide additional contingency for unbudgeted cost overruns associated with the well.
Nido’s budgeted share of the exploration spend is A$24-million.