Rain Resources arranges $65-million financing

[Siciid1986]

Rain Resources Inc. (Octant) has engaged a syndicate of agents, co-lead by RBC Capital Markets and Canaccord Genuity Corp. and including FirstEnergy Capital Corp. to raise, on a reasonable commercial efforts basis, up to $65-million through the issuance of subscription receipts of the corporation.

 

The proceeds of the offering will be used to finance a capital program focused on exploration and development in Madagascar, Uganda, the Democratic Republic of Congo and Somaliland, as well as for general corporate purposes. The corporation has entered into:

 

 

An option agreement to farm in to the block 2102 production sharing contract in Madagascar;

A letter of intent to farm in to Uganda block EA4B, DRC block V and Somaliland Berbera block SL9, with Ophir Energy PLC.

 

The corporation is also pleased to report the results of independent evaluations of oil resources prepared by DeGolyer and MacNaughton Canada Ltd. on the blocks contemplated in the Madagascar option and the LOI. The DeGolyer reports have an effective date of Dec. 31, 2011, and were prepared in accordance with NI 51-101. According to the DeGolyer reports, the best estimate gross prospective resources associated with the Madagascar option and LOI blocks is 796 million barrels.

 

Madagascar option and LOI

 

Pursuant to the exercise of the Madagascar option, the corporation will receive a 50-per-cent operating interest in block 2102, a 12,290-square-kilometre onshore block in Madagascar. The corporation thereby agrees to fund 100 per cent of the drilling costs for the first two exploration wells drilled on block 2102. The first exploration well is anticipated to commence drilling in July, 2012, and each well is expected to cost approximately $20-million. Accordingly, $40-million of the net proceeds of the offering will be allocated to exercising the Madagascar option and financing Octant's commitments in block 2102.

 

In addition, the LOI provides that the corporation pay:

 

 

A total of 46.75 per cent of certain geological exploration costs for a 26.75-per-cent, non-operated, interest in block V, a 7,447-square-kilometre onshore block in the DRC;

A total of 100 per cent of the certain geological exploration and drilling costs for an 80-per-cent, operated interest in block 4B, a 486-square-kilometre block in Uganda;

A total of 75 per cent of certain geological exploration costs for a 55-per-cent, operated interest in block SL9, a 16,270-square-kilometre onshore exploration block in Somaliland (block SL9/).

 

 

 

[uchi]

Did the TFG approve of this?

[Xaaji Xunjuf]

TFG who?

[burahadeer]

I knew the largest deposits in africa + natural gas, coal and otha minerals.That was what the london coference all about...somali oil...good for everybody.Baidabo region is the 2nd largest some going to ethiopian side, that's why shabab evicted so quickly with ethiopian army.....ethiopians have a stake , wana drill their side.

It will be a new horn of africa....anyone who destabilizes will be dealt with iron fist as Hillary pointed it out.

[Somalia]

burahadeer;802946 wrote:

I knew the largest deposits in africa + natural gas, coal and otha minerals.That was what the london coference all about...somali oil...good for everybody.Baidabo region is the 2nd largest some going to ethiopian side, that's why shabab evicted so quickly with ethiopian army.....ethiopians have a stake , wana drill their side.

It will be a new horn of africa....anyone who destabilizes will be dealt with iron fist as Hillary pointed it out.

Haha, such conspiracy theories, you ain't got nothing.

[burahadeer]

.

[The Hermet]

We have nothing to prove this is hot air free a.k.a somaliland. Just with the one in las caond itself we surpaced u let alone the coast and entire north ..... I just heard a bubble burst ha ha pirate dreams falling apart enjoy your well in bosaso

[Freedom]

Lol

[Jacaylbaro]

So far so good .....