By Sheri Kasprzak
New York, Feb. 3 - FirstAfrica Oil plc said it has settled a £15.5 million private placement of convertible loan notes.
The 10% notes mature Jan. 31, 2008 and are convertible into common shares at 4p each.
The loan was sold in multiples of £1,000.
The company also said it entered into an option agreement with Energem Petroleum for oil concessions in the Republic of Chad. If the option agreement is settled after March 15, 2006, the interest rate on the notes will increase to 20%.
Proceeds will be used to implement the company's field development program on the East Orovinyare oil field offshore Gabon. The rest will be used for working capital.
Based in London, FirstAfrica is an oil and natural gas exploration company.
| Issuer: | FirstAfrica Oil plc
|
| Issue: | Convertible loan notes
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| Amount: | £15.5 million
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| Maturity: | Jan. 31, 2008
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| Coupon: | 10%
|
| Price: | Par
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| Yield: | 10%
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| Conversion price: | 4p
|
| Settlement date: | Feb. 3
|
| Stock symbol: | London: FAO
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| Stock price: | 4.15p at close Feb. 3
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