Boston, MA 04/21/2014 (wallstreetpr) – Samson Oil & Gas Limited (ADR) (NYSEMKT:SSN) raises funds of $5.4 million from equity financing. It places 11,255,541 American Depositary Shares (ADSs) for the U.S. investors at $0.375 per ADS and 65,000,000 ordinary shares for Australian investors for $0.02 per ordinary share. It also includes options or warrants for additional purchase of three for 10 subscribed shares at an exercise price of $0.61 per ADS or A$0.033.
Additional financing
Samson aims to increase the capital resources by equity financing or credit facility to fund drilling in North Stockyard project. Therefore, the Company raised funds of $5.4 million through equity financing to support working capital, and to drill and complete four Three Forks wells in North Stockyard project.
Samson’s long-term prospective
During FY2014, Samson Oil & Gas Limited (ADR) (NYSEMKT:SSN) plans to invest $27.6 million for exploration and development of wells. It includes $15.3 million capital expenditures to drill five wells during first six month and the remaining $12.3 million will use for three additional wells by the end of 2014. So, the Company needs funds to support its normal operation either through additional capital or credit facility.
In January 2014, the Company signed to borrow up to $25 million from the Mutual of Omaha Bank for its operations. As of now, Samson borrowed $8.0 million, of which $4.0 million are already used for drilling purpose and expects to use the remaining by June 30, 2014. In addition, the Company has cash and cash equivalents of $5.9 million as of December 31, 2013, but limited for planned expenditure. So, additional borrowing is likely to affect if the Company does not comply under the credit facility to fund its operations.
Therefore, Samson Oil & Gas Limited (ADR) (NYSEMKT:SSN) is looking other alternatives such as equity financing or other capital raising programs to support exploration and development works for 2014 and 2015.
