Funding Round Supports Expanding Exploration Portfolio
Sintana Energy (LSE:SEI) (USOTC:SEUSF) (TSX-V:SEI) has conditionally secured US$11.5 million in fresh funding to help finance a growing exploration pipeline, including activity linked to the Chevron-operated Nabba-1 well offshore Namibia in PEL 90.
The fundraising was completed at 22.5 pence per share on AIM and C$0.41 per share on the TSX Venture Exchange, with approximately 38.0 million new common shares set to be issued.
The AIM issue price reflected a 13.5% discount to the company’s closing mid-market share price of 26 pence on May 14.
Directors Participate in Oversubscribed Raise
The transaction consisted of a US$10.8 million placing covering around 35.6 million shares, alongside a US$0.7 million subscription for approximately 2.37 million shares purchased by directors and eligible investors from Canada and Australia.
Chief executive Robert Bose and company president Eytan Uliel each invested US$250,000 through subscriptions for 826,105 shares apiece.
Proceeds to Fund Drilling and Strategic Acquisitions
Management said the oversubscribed fundraising, together with existing cash reserves and proceeds from the company’s Exxon settlement in Colombia, provides additional flexibility to pursue key exploration and acquisition opportunities.
The proceeds are expected to help finance activity at the Nabba-1 well and support the cash consideration tied to acquisitions involving interests in PEL 37 in Namibia’s Walvis Basin and KON-16 in Angola’s Kwanza Basin.
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