New World Oil And Gas Share News (NEW)

Ahead of its upcoming General Shareholders' meeting on September 12th oil and gas exploration outfit New World Oil&Gas has announced that it will propose to raise 25m dollars - approximately 16m pounds - via the issuance of 2,184,897,959 subscription Shares, at a price of 0.735p each, to Luxembourg-based Niel Petroleum S.A..The proceeds of the placing will be dedicated to financing new projects ($19.6m), meeting agreed overheads ($5.0m) and covering the costs of the transaction ($400,000). In the firm's own words, "it will therefore support and strengthen the Company's ongoing discussions regarding obtaining farm-in or joint venture partners in Denmark and/or Belize, in addition to possible funding for the acquisition of new projects and opportunities in accordance with the Company's strategy." As well, a related conditional Debt Facility Commitment Letter - for another $25m gross - is intended to be posted to shareholders today and may offer an alternative to equity funding in the future, the company states. Resulting from all of the above, the subscriber will hold approximately 75.66% of the enlarged share capitalThe subscriber is a junior oil and gas company whose strategy is to develop a large and diversified portfolio of early stage oil and gas assets principally in Africa, focussed on Senegal, Guinea, Democratic Republic of Congo, Sudan and Ethiopia.On the date of admission the subscriber will be entitled (subject to certain terms and conditions) to appoint, in the first instance, two Subscriber nominated directors to the Board.Shares of New World Oil&Gas ended today's session lower by 15.38% - or 0.15p - at 0.83p.AB