wow.....nice ann

Ready made deal - and off they go. Should set GGX up for a very healthy future.

Level 7, 10 Barrack Street
Sydney NSW 2000
Tel: +61 2 9392 8642
Fax: +61 2 9299 8195
Cell: + 61 414 292 934
ACN 112 138 780
Email:[email protected]
12 June 2007
Company Announcements Office
The Australian Stock Exchange Limited
By electronic transmission
FARMIN NEW ZEALAND AND CAPITAL RAISING
FARMIN TO PEP 38260 ONSHORE NEW ZEALAND WITH DRILL-READY PROSPECT, AND $3 MILLION CAPITAL RAISING
Gas2Grid Limited (ASX: GGX) advises that it has entered into an agreement to farmin to the onshore portion of Canterbury Basin exploration permit PEP 38260. Under the terms of the agreement, the Company will earn a 40% interest in the onshore area by funding the first $1.2 million, and its pro-rata share of any cost over $1.2 million, of the cost of the forthcoming Kate-1 well.
To fund this drilling, as well as on-going activities in the Philippines (SC44) and the Aquitaine Basin of France (St Griede application area, GGX 50%), the Company is completing a new equity raising of up to $3 million as follows:
(a) By private placement of securities with professional and sophisticated investors of 29,465,576 fully paid ordinary shares at $0.06 to raise $1.768 million, of which the placement of 20,537,566 shares ($1.232 million) is subject to the approval of shareholders in general meeting; and
(b) A shareholder’s Share Purchase Plan (SPP) for the issue of 20,534,423 fully paid ordinary shares at $0.06 to raise $1.232 million. Each shareholder registered on 18 June 2007 will be entitled to subscribe for a maximum 83,333 shares at a cost of $5,000. If applications are received for a total number of shares in excess of the maximum of 20,534,423, each application will be scaled back proportionately so that the total number of shares to be allotted under the Plan does not exceed the maximum of 20,534,423 shares. The offer under the plan will close on June 29 2007 and will be fully underwritten so that any shares not taken up by shareholders will be placed with other professional and sophisticated investors.
Offer documents for the SPP will be mailed to shareholders in the near future. The placements and SPP are priced at a 12% discount to the volume weighted average of the Company’s share price (VWAP) over the 5 trading days preceding this announcement.
FARMIN TO PEP 38260
Petroleum Exploration Permit (PEP) 38260 is a 5,200 square kilometre permit covering onshore and offshore portions of the Canterbury to the north of Christchurch, on the South Island of New Zealand (see Map). Gas2Grid Limited has entered an agreement with the 100% permit holder
Green Gate Limited, a private New Zealand corporation, whereby it can earn a 40% interest in the 2000+ square kilometre onshore portion of the permit by funding the first $1.2 million, and its pro-rata share of any cost over $1.2 million, of the forthcoming Kate-1 well.
The Kate-1 well will test an anticlinal structure, approximately 50 kilometres north of Christchurch, which has prominent surface expression as well as seismic evidence of subsurface closures in the approximately 1050 metre thick sedimentary section. The primary target is sandstone reservoirs in the Late Cretaceous Broken River Formation coal measures (450-1050 metres), with secondary targets in younger sandstones and limestones. The structure as mapped has the potential to reservoir upwards of 25 million barrels of oil in place in the Broken River formation.
An oil seep was uncovered during geotechnical works on the flank of the anticline in 2003, and soil gas surveys have confirmed the presence of thermogenic hydrocarbons in the vicinity of the mapped structure.
The company is currently evaluating rig availability with a view to drilling the Kate-1 well in a 3-4 month timeframe. Further details of timing will be announced in due course.
Dr David King
Executive Director