PharmAust to raise A$250,000 for Mediterranean oil and gas project

PharmAust (ASX: PAA) has agreed to farm in to two contiguous offshore Exploration Permits.

These are G.R15.PU, located offshore the island of Pantelleria southwest of Sicily in Italian waters, and the Kerkouane Permit located offshore northeast Tunisia. Collectively, the prospect is known as the Lambouka oil and gas prospect.

PharmAust will earn a 10% working interest in Lambouka which is scheduled to be drilled in the June quarter 2010.

It is a large tilted horst block with a combined prospective mean resource of 270 Million Barrels of Oil Equivalent, targeting three prospective and regionally proven hydrocarbon objectives.

The PAA board will undertake a non renounceable entitlement offer of 127,353,937 options at 0.2 cents per option to shareholders on a 1 for 2 basis, to raise $254,707.87.

The options will have an exercise price of 10 cents and an expiry date of 31st March 2012. The company proposes to issue a prospectus for this rights issue in early April.

In conjunction with the rights issue the company proposes to make a placement of 119,103,937 options.

This placement will be subject to shareholder approval at a meeting of shareholders scheduled to take place in April 2010.

These options will be on the same terms as the options offered under the entitlement issue. The funds raised under these capital raisings will be used for working capital purposes.

http://www.proactiveinvestors.com.au/companies/news/5933/pharmaust-to-raise-a250000-for-mediterranean-oil-and-gas-project-5933.html