$87.3 million raised for rig contract

Eirik Raude: African Petroleum plans to use Ocean Rig's semi-submersible, pictured here, for a two-well programme offshore Liberia at the end of the year

Ocean Rig

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Danica Newnham

 24 July 2012 03:03 GMT

Australian explorer African Petroleum has revealed it will use the A$85 million (US$87.3 million) raised in a new share placement to contract an additional oil rig to develop its African assets.

The company announced that it had received firm commitments from institutional shareholders for 62,963,000 new fully paid ordinary shares at A$1.35 per share.

It stated that the placement was expected to be completed on Friday, following which African Petroleum would have 1,693,533,051 shares on issue and a market capitalisation of about A$2.3 billion.

The rig, which has been conditionally contracted, is planned to drill an appraisal well at Narina in the Liberian offshore LB-09 Block in September or October.

This drilling has been scheduled ahead of the previously contracted two-well programme with Ocean Rig’s…

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