Pacific Asia Petroleum Inc. has completed its registered direct offering, raising an aggregate amount of $17.5 million, before deducting placement agent fees and offering expenses.
In the offering, an aggregate of 4,146,922 shares of the company’s common stock, a series of warrants to purchase up to an aggregate of 1,658,769 additional shares of common stock (the "Series C Warrants"), and a second series of warrants to purchase up to an aggregate of 1,658,769 additional shares of common stock (the "Series D Warrants"), were sold to certain institutional investors. The Series C Warrants are exercisable at an exercise price of $4.50 per share, effective immediately within 42 months after the closing, and the Series D Warrants are exercisable at an exercise price of $4.12 per share, effective immediately until December 5, 2010.
As noted in the January 2010 issue of Oil & Gas Financial Journal, the New York-based company commenced production at the Oyo oilfield located in the deep offshore Niger Delta, about 120 kilometers off the Nigerian coast. The field has the ability to initially produce at a rate of approximately 25,000 barrels of oil per day from two subsea wells connected to the Armada Perdana FPSO, which has a treatment capacity of 40,000 barrels of liquids per day, and is capable of storing up to one million barrels of crude oil.