The Permian project is truly very exciting for the Company, although we wait for the production test results that should be available next week to give us a final confirmation of our expected success. The company expects that the $9m it anticipates raising through a rights issue to existing shareholders and further placement to sophisticated & professional investors should be the last equity raising associated with this project. The balance of the project would then be able to be financed through production finance and the cash flow to be returned from the operations of the wells.
It is hoped that all shareholders will participate in the Rights Issue to enable them to average down their investment cost base and benefit from the expected up lift in share price.
We expect to make a further announcement next week with the IP results of the first well and to clarify the size of the project that does not appear to have been appreciated by the market.
Regards
Chris Ritchie Chief Financial Officer Golden Gate Petroleum Limited 566 Elizabeth Street Melbourne 3000 Tel: +61 3 9349 1488 Fax: +61 3 9349 1186 Email: [email protected] Web: www.ggpl.com.au
GGP Price at posting:
1.9¢ Sentiment: Buy Disclosure: Held
