Dwyka, Nido report strong interest in placements; Fairborne closes offering; Superconductor to sell shares

By Kenneth Lim

Boston, May 28 - Dwyka Resources Ltd. said a £10.33 million share placement received strong enough interest to close ahead of schedule.

Meanwhile, Nido Petroleum Ltd. announced a A$41.25 million private stock placement that it said will help to hasten its exploration program.

Fairborne Energy Ltd. said it raised C$28.41 million through a stock placement, while Superconductor Technologies Inc. announced plans for a $6 million direct offering.

Dwyka closes placement early

Dwyka Resources said it closed a £10.33 million private stock placement earlier than planned amid strong interest in its offering.

The company sold about 39.7 million ordinary shares at 26p apiece. Dwyka common stock (AIM: DWY) closed at 31.5p on Wednesday, higher by 0.8%, or 0.25p.

The deal was brokered by Ambrian Partners Ltd.

Dwyka, a West Perth, Western Australia-based mineral and diamond exploration company, said it will use the proceeds to help fund its acquisition of coal interests in the Philippines as well as costs related to further exploration, drilling, equipment purchases and staffing.

On May 7, Dwyka said it entered into an agreement giving it an option to acquire an interest in the Daguma and Bonanza coal deposits on the Philippines island of Mindanao.

"We are absolutely delighted with the level of interest shown in the Daguma and Bonanza coal projects," Dwyka chief executive Melissa Sturgess said in a statement. "The financing has closed ahead of the scheduled time and we look forward to bringing shareholders early news of our progress on this project."

Nido to accelerate program

Nido Petroleum said it completed a A$41.25 million private stock placement to "sophisticated investors."

The placement involved 82.5 million common shares at A$0.50 each. Nido common stock (ASX: NDO) closed unchanged at A$0.495 on Wednesday.

The deal was arranged by CLSA Asia-Pacific Markets and Merrill Lynch and is expected to settle on June 2.

The placement helped the company to land new investors among funds from London, Singapore and Australia, Nido said in a press release.

Nido, a Como, Australia-based oil and gas exploration company, said it will use the proceeds for drilling and for working capital.

"We have been overwhelmed with the level of interest from investors who strongly support Nido's strategy of accelerating its exploration activities, as shown by the share placement being well oversubscribed," Nido president and chief executive Jocot de Dios said in the release. "Investors have been excited to learn of the substantial value afforded by Nido's exploration acreage which represents an opportunity to take part in what is a unique story in the oil industry today: a large position in an underexplored hydrocarbon basin with significant identified oil-in-place potential in excess of 11 billion barrels (gross, unrisked) across Nido's entire exploration portfolio. With the oil price climbing to new heights each day, this fundraising will enable us, once again, to seize the first mover advantage by accelerating our exploration drilling program."

Nido said it currently plans to expand its drilling program in its Service Contract 54 project from one well to three wells, and the proceeds of the placement will allow the company to secure drilling rigs and other equipment. The proceeds will also supply working capital requirements on the company's Galoc project before first oil is expected in June.

Fairborne raises C$28.41 million

Fairborne Energy said it sold C$28.41 million worth of shares in a private deal, including C$3.7 million from an over-allotment option that was exercised.

The deal initially priced for C$24.7 million plus the greenshoe.

The entire placement saw Fairborne selling 2.3 million common shares at C$12.35 apiece. Fairborne common stock (TSX: FEL) gained 0.1%, or C$0.10, to close at C$9.75 on Wednesday.

Fairborne, a Calgary, Alta.-based oil and natural gas exploration company, said it will use the proceeds to fund its exploration and development programs and for working capital.

Superconductor plans stock offering

Superconductor Technologies said it plans to sell $6 million of stock in a direct offering through agent MDB Capital Group LLC.

The placement comprises 2 million shares at $3.00 each. Superconductor common stock (Nasdaq: SCON) dropped 16.2%, or $0.63, to close at $3.26 on Wednesday.

Superconductor, a Santa Barbara, Calif.-based maker of wireless voice and data products, said it will use the proceeds for general working capital.

In its most recent financial report, Superconductor posted a net loss of $2.3 million in the first quarter of 2008, compared with a year-ago loss of $2.9 million. The company said it had $11.7 million in cash and cash equivalents as of March 29.

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