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Pancontinental Oil & Gas sells interest in Dempsey Gas Project to Raven Energy

Following the sale and associated capital raising, Pancontinental will hold about 4% interest in Raven.

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Pancontinental also holds interest in two other Sacramento Basin gas plays

Pancontinental Oil & Gas NL (ASX:PCL) has signed an agreement to sell its wholly-owned subsidiary Bombora Natural Energy Pty Ltd to Raven Energy Limited (ASX:REL) for 295 million Raven shares.

Bombora holds a 10% interest in the Dempsey Gas Project and leased interests in associated prospects, including the Anzus prospect, in California’s Sacramento Basin.

Participation in capital raising

Pancontinental will receive 295 million fully paid ordinary Raven shares at an issue price of 0.18 cents per share, amounting to $53.1 million.

The shares will be issued in two tranches, with 267,806,533 shares issued within 5 business days of the agreement’s execution and 27,193,467 shares within 60 days of completion.

Pancontinental will also participate in Raven’s proposed share placement to raise up to $2 million and will subscribe for 160 million shares at an issue price of 0.1 cents.

Raven aims to complete the capital raising by December 31, 2018.

Low entry cost assets

Pancontinental is an exploration company targeting conventional oil and gas plays, with assets in Namibia and the US.

The company’s portfolio includes low entry cost onshore gas projects that can be quick to drill and develop for commercial production.

The Perth-based explorer also has offshore projects with large resource potential that are being funded by international partners.

Quick facts: Pancontinental Oil & Gas NL

Price: 0.002 AUD

ASX:PCL
Market: ASX
Market Cap: $10.81 m
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