SINGAPORE - An existing business partner of oil and gas production company Interra Resources is buying a 13.6 per cent stake in it for US$3.48 million (S$4.69 million), or 5.9 cents per share.
China ZhenHua Oil, which has a joint venture with Interra in Myanmar, will get to nominate a director to Interra's board after the placement.
The placement price represents a 1.67 per cent discount to Interra's volume-weighted average price of 6 cents on Thursday (Dec 14), which was the last trading day before the Friday placement.
The placement will raise US$3.48 million, of which US$10,000 will go to placement-related expenses. The remaining net proceeds will be used for general corporate purposes.
If the placement had been completed on Jan 1, 2017, earnings per share for the nine-month period ended Sept 30 would have been 0.037 US cent instead of the reported 0.042 US cent.
China ZhenHua Oil holds 40 per cent of Goldpetrol Joint Operating Co Inc, which operates Interra's Chauk and Yenangyaung fields in Myanmar. Interra owns the remaining 60 per cent.