WesternZagros Resources (CVE:WZR) has wrapped up a second non-brokered private placement of C$30 million worth of 4 per cent convertible, senior unsecured notes, the company announced Tuesday.
Last month, the oil and gas explorer closed a C$70 million convertible notes financing.
The newest funds will also be used to finance its capital and operating activities.
The convertible notes have a face value of C$1,000 per note, a coupon of 4 per cent, and a maturity date of December 31, 2015. They can be converted into common shares of the company at a price of C$1.45 apiece, which WesternZagros says represents a conversion premium of about 27 per cent to the 30-day average price for the common shares.
Interest on the notes is payable semi-annually, with the first interest payment due on December 31 this year.
The company said that as per an agreement signed in March of this year, Crest Energy has decided to exercise its participation rights in the financing to maintain its 19.8 per cent stake in WesternZagros.
WesternZagros is focused on acquiring properties and exploring for, developing and producing crude oil and natural gas in Iraq. It holds a 40 percent working interest in two production sharing contracts with the Kurdistan Regional Government.
In late May, the Canadian oil and gas company with operations in Iraqi Kurdistan reported a 33 percent increase in its cash position at the end of the first quarter as proven resources and output potential improved.
Total current assets, including cash and cash equivalents as well as short-term investments, rose to $198.9 million as of March 31, from $149.2 million at the end of December, the Calgary, Alberta-based company said.