Golden Gate Petroleum Limited (ASX:GGP) (“Golden Gate” or the “Company”) is pleased to announce that it has signed a mandate with Novus Capital Limited (“Novus”) to raise up to $10,000,000 by way of the issuance of Secured Convertible Notes (the “Offering”) on a best endeavours basis. The Offering will involve the issue of up to 200,000,000 Convertible at a face value of $0.05 per Convertible Note to raise the total of up to $10,000,000.
The purpose of the Offering is mainly to fund Golden Gate’s investment in the drilling of the Company’s first horizontal well (SRH #5H) in the Permian Basin Project located in Reagan and Irion Counties, Texas, USA. The SRH #5H well is expected to start drilling in 2nd Quarter 2012/13 FY, subject to rig availability. In addition to the horizontal well development, Golden Gate has identified some additional properties in the Permian Basin which may be attractive from an acquisition perspective. As such, some of the funds from this capital raising may be used by Golden Gate to acquire other selected properties for the purposes of the Permian Basin Project.
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