Austral Pacific Set to Complete Financing
February 10 2008 - 10:41PM
PR Newswire (US)
Wellington, New Zealand - February 11, 2008 - Austral Pacific
Energy Ltd. (TSX-V: APX; NZSX: APX; AMEX: AEN) WELLINGTON, New
Zealand, Feb. 10 /PRNewswire-FirstCall/ -- Further to Austral
Pacific Energy Ltd.'s news release of December 19, 2007 announcing
a US$15million placement, the Company confirms that it has received
US$11.1million and has been advised it will receive the final
tranche of $3.9 million on February 22, 2008. The financing
involves the sale of 12,500,000 common (ordinary) shares with
attached warrants, sold as units at $1.20 per unit. Each unit
consists of one common share and one share purchase warrant. The
warrants are exercisable one-for-one into the Company's common
shares for 12 months after closing at an exercise price of $2.25. A
portion of the securities were placed in the United States to
accredited investors in reliance on Rule 506 and are subject to
resale restrictions in the United States under Rule 144 for a one
year period but can be traded under Rule 904 through the TSX
Venture Exchange after 4 months which is the basic hold period
applicable to all the securities. The majority of the proceeds from
the private placement will be used to accelerate the Cheal field
development with a goal of increasing the field reserve base and
increasing production through the newly commissioned Cheal
Production Station. The proceeds will also fund other appraisal and
development projects in Taranaki, New Zealand, and will be used to
progress the Cardiff field appraisal. The Company has used part of
the proceeds to pay the additional cash component of the previously
announced purchase of a further interest in its Cardiff permit, by
the purchase of all the shares of International Resource Management
Corporation Limited, whose principal asset is a 19.8% interest in
the Cardiff gas project (PMP 38156). Cheal Operation Update Cheal
A1 was tied in to the production facilities this week as the first
producing well in the Urenui formation (shallower than the primary
Mt Messenger producing zone). The well will be brought on-stream
slowly and commingled with production from the primary reservoir.
The well is expected to produce at 500mcf/d and 45-50 barrels of
crude per day. The Cheal field is currently producing in excess of
700bopd, in line with the expectations of the existing wells. Final
design work for two additional wells from the A and B sites is now
complete and ready for JV approval. Surface casing has been set at
the A site and a manifold is in place at the B site to expedite the
tie-in of these wells to the Cheal production facility. Cardiff
Testing Testing operations on the prospective K3E formation in the
Cardiff 2A ST-1 well are now in the final stages, with flow testing
scheduled to commence within the next ten days. This test is an
important component of the ongoing field appraisal and development
activities. About Austral Pacific Austral Pacific is a listed
independent oil and gas exploration and production company
registered in Canada with corporate headquarters in Wellington, New
Zealand. The Company has an interest in thirteen exploration and
production permits totaling over 2.6 million acres in onshore New
Zealand and Papua New Guinea. The Company's primary assets are the
Cheal Field, Kahili Field and Cardiff Field located onshore in the
highly prolific Taranaki Basin on the North Island of New Zealand.
In Papua New Guinea, the Company has an interest in four onshore
blocks. Austral Pacific Energy (NZ) Limited Web site:
http://www.austral-pacific.com/ Email: Phone: Thom Jewell, CEO +64
(4) 495 0880 or Brad Holmes: +1 (713) 304 6962 None of the
Exchanges upon which Austral Pacific's securities trade have
approved or disapproved the contents hereof. This release includes
certain statements that may be deemed to be "forward-looking
statements" within the meaning of applicable legislation. Other
than statements of historical fact, all statements in this release
addressing future production, reserve potential, exploration and
development activities and other contingencies are forward-looking
statements. Although management believes the expectations expressed
in such forward-looking statements are based on reasonable
assumptions, such statements are not guarantees of future
performance, and actual results or developments may differ
materially from those in the forward-looking statements, due to
factors such as market prices, exploration and development
successes, continued availability of capital and financing, and
general economic, market, political or business conditions. Please
see our public filings at http://www.sedar.com/ and
http://www.sec.gov/edgar/searchedgar/webusers.htm for further
information. DATASOURCE: Austral Pacific Energy Ltd. CONTACT: Thom
Jewell, CEO, +64 (4) 495 0880, or Brad Holmes, +1-713-304-6962,
both of Austral Pacific Energy Ltd., Web site:
http://www.austral-pacific.com/
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