WesternZagros Resources (CVE:WZR) struck a strategic investment deal with Crest Energy that would see the oil and gas company raise $57 million in a non-brokered financing.
private placement, which is expected to close on August 10, will see
Crest own just under 10 per cent of WesternZagros’ outstanding shares.
company plans to sell 40.7 million shares priced at $1.40 each. This is
a 10 per cent premium to WesternZagros’ closing stock price on August
As a result, the Abu Dhabi National Energy Co, or Taqa, has
the right to buy 10.14 million extra shares priced at $1.40 to keep its
ownership interest of 19.9 per cent.
The Calgary, Alberta-based
company also received $83 million from Russian oil and gas giant
Gazprom Neft B.V. in back costs from the Garmian production sharing
WesternZagros is the operator of the Garmian block,
which contains the producing Sarqala-1 oil well, the Mil Qasim discovery
and several undrilled exploration prospects.
sharing contract will see the Kurdistan Regional Government receive
about $27 million in reconciliation, while WesternZagross retains $56