Monumental Energy Raises $2.2MM in Share Offering
by Jov Onsat | Rigzone Staff
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas
Monumental Energy Corp has raised around CAD 3.05 million ($2.2 million) in a private placement that offered nearly 34 million units.
“The Company intends to use the net proceeds of the Private Placement to fund additional oil and gas workover projects with New Zealand Energy Corp and L&M Energy, a reserve for potential asset acquisition investigations and due diligence to drill new oil and gas wells, and developing a technical and mechanical capability within the market for strategic competitiveness, and for general working capital purposes and corporate expenses”, the Vancouver, Canada-based company said in a press release.
Each unit was priced CAD 0.09. “Each Unit is comprised of one common share of the Company and one transferable common share purchase warrant”, Monumental said. “Each whole Warrant is exercisable to purchase one common share of the Company at a price of $0.15 per share for a period of two years from the closing date of the Private Placement”.
Recently Monumental, in partnership with New Zealand Energy Corp (NZEC) and L&M Energy, achieved an unstimulated flow rate of 300 barrels per day from the Ngaere-2 well, under Monumental’s agreement with NZEC to fund the latter’s share of costs for the Waihapa-Ngaere campaign.
Part of the proceeds will fund additional oil and gas workover wells in New Zealand.
“Currently the company has four wells online: Copper Moki-1, Ngaere 1 and 2 and Waihapa H1”, Monumental said in an online statement March 30. “Six additional wells are in the pipeline and permitted.
“Monumental Energy along with NZEC as operator and its co-venturer L&M have estimated that 1000 boe/d is possible. Constrained production is choked back to maintain stable flow and additional ways to increase daily production and capacity are underway immediately”.
Chief executive Maximilian Sali said, “The success of the last three wells has exceeded our expectations, and with a stronger than forecast oil price, this has created the perfect storm to grow the company and be able to continue additional workovers”.
Monumental is investing in the Waihapa-Ngaere fields under an agreement to fund NZEC’s share of costs as a 50-50 co-venturer with L&M Energy Ltd in Petroleum Mining Licenses 38140 and 38141.
“NZEC has granted Monumental a project-specific royalty, effective upon satisfaction of all conditions precedent and commencement of production”, NZEC said in a statement February 4 announcing the completion of the funding agreement. “Monumental will initially receive 75 percent of net receipts, payable quarterly, until its funded costs have been recovered, after which Monumental will receive an ongoing royalty equal to 25 percent of net receipts”.
by Jov Onsat | Rigzone Staff
click here to read this article at Rigzone.com
*this article was not written by Roseland Oil & Gas