Quest Petroleum NL (ASX:QPN) has announced it will undertake a placement to investors to raise AUD$5 million for the exploration of oil and gas in South Sumatra's Jaya sub-basin.
The Jaya sub-basin is situated within Quest's Ranau production sharing contract and is almost completely unexplored. The area potentially harbors many millions of barrels of oil and a trillion cubic feet of natural gas.
According to Quest Chairman Mr. Gus Simpson the company has identified three drill locations within Southern Sumatra's Jaya sub-basin, and is optimistic about potential hydrocarbon discoveries within the area.
Simpson also says approvals and site access are well advanced.
Quest will make a $2500,000 placement to investors comprised of both international and domestic institutions in two tranches, the first amounting to $1,198,154 and the second amounting to $1,301,485. Both tranches price shares at 0.6 cents.
Quest will also make a $2,500,00 entitlement issue to existing shareholders under the same conditions as the placement.