Tracer Petroleum Corporation Announces Private Placement of up to 12 Million Units

Strategic Insights -

Tracer Petroleum Corporation has announced a non-brokered private placement of up to 12 million units at $0.20 US per unit, with each unit consisting of one common share and one-half non-transferable common share purchase warrant. The placement aims to expand the company's Indonesian holdings, fund drilling and exploratory work on the North Tanjung Block in Borneo, and utilize the remaining proceeds for working capital. The placement will be issued in two tranches, with the first tranche of up to 9 million units going to a group with proven financing and capital raising abilities, and the second tranche of up to 3 million units going to management and associates.

Key Takeaways:

  • Tracer Petroleum Corporation is issuing up to 12 million units at $0.20 US per unit, with each unit consisting of one common share and one-half non-transferable common share purchase warrant.
  • The private placement aims to expand the company's Indonesian holdings, fund drilling and exploratory work on the North Tanjung Block in Borneo, and utilize the remaining proceeds for working capital.
  • The placement will be issued in two tranches, with the first tranche going to a group with proven financing and capital raising abilities, and the second tranche going to management and associates.
  • The company is currently carrying on discussions with a company interested in reviewing the Ngurit gas discovery and planned drilling program.
  • Various opportunities have been identified for the company to acquire an interest in currently producing oil and gas properties or ones which have discoveries and are considered to be close to commercialization.
  • No agreements are in place at this time, however a Memorandum of Understanding has been executed which may result in a definitive agreement over the coming months.
  • The subject financing will assist in initiating the Company's plans to significantly expand operations in Southeast Asia.

Statistics:

  • The private placement of up to 12 million units at $0.20 US per unit is expected to raise approximately $2.4 million.
  • The North Tanjung Block in Borneo is located on the Island of Borneo in the provinces of South and Central Kalimantan, Republic of Indonesia.
  • The company plans to commence drilling and exploratory work in April/May 1998.
  • The company has executed a Memorandum of Understanding which may result in a definitive agreement over the coming months.
  • The company's operations in Southeast Asia will significantly expand with the assistance of the subject financing.

Sources:

  • "Tracer Petroleum Corporation Announces Private Placement of Up to 12 Million Units." Tracer Petroleum Corporation. 9 Mar. 1998.
  • "TCXXF Company Profile." PR Newswire. 9 Mar. 1998.
  • "US Securities and Exchange Act of 1934." US Securities and Exchange Commission. 24 Apr. 1934.