Ann: Form 603 - Notice of Initial Substantial Hol, page-5

re: Ann: Form 603 - Notice of Initial Substan... I know where his money came from!

October 14, 2010, 10:54 am
Perth based oil and gas company Tap Oil will attempt to raise up to $82 million to fund the 75 per cent purchase of Gulf of Thailand-focused explorer Northern Gulf Petroleum.

Northern Gulf, controlled by Thai businessman Chatchai Yenbamroong, owns 40 per cent of the undeveloped Manora oil field and 40 per cent of the Rossukon discovery.

Tap will pay an initial $25 million cash and $12.5 million in shares for the private company, as well as funding the vendor's 25 per cent share of project costs to first production, capped at $20 million.

Tap will also pay up to $US37 million in follow-up bonuses to Northern Gulf, depending on project success.

The capital raising via UBS will consist of an underwritten $13 million institutional placement and a non-renounceable one-for-two offer to existing shareholders, which is underwritten to $37 million. - meaning Tap is guaranteed to raise at least $50 million.

The shares will be issued at 81¢ a share, which is a 13.8 per cent discount to the company's last traded price of 94¢ before it entered a trading halt for the announcement.

Tap's biggest shareholder M&G Investment Management has committed to take up its full entitlement.