1st Sep 2014 09:23
LONDON (Alliance News) - Baker Steel Resources Trust Ltd said Monday that it has agreed to subscribe GBP585,000 as part of pre-initial public offering fund raising of up to GBP15 million in Global Oil Shale Group PLC.
The subscription price is indicated at 70 pence per share, however, the final subscription price will be determined by the pre-initial public offering round, and in consultation with existing and potential new investors, said the company. The minimum subscription price is 40 pence per share.
Global Oil is a private oil share developer with assets including the Tarfaya oil shale project in Morocco, and the Julia Creek oil shale project in Queensland, Australia. It has signed a memorandum of understanding with Moroccan authorities to develop a block containing a non-compliant resource of 376 million barrels of shale oil in Tarfaya at oil grade of 60-95 litres per tonne.
The Julia Creek tenements cover an area of 1,041 square kilometres and contains Joint Ore Reserves Committee defined indicated and inferred resources of 2.18 billion barrels of shale oil at grades of 40 to 90 litres per tonne.
Global Oil plans to use the proceeds from the pre-IPO fund-raising for a feasibility study and associated works in relating to Tarfaya, and leading up to a planned IPO in 2015 to finance first production of oil and electricity in Morocco.
Baker Steel took a 5.65% interest in the company in early July 2014 at a price of 35 pence per share.
Shares in Baker Steel were trading down 2.2% at 38.14 pence Monday morning.
By Hana Stewart-Smith; [email protected]; @HanaSSAllNews
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