BioProspect share sale to fund Cagayan oil drilling

MANILA, Philippines - Australia’s BioProspect Ltd., whose subsidiary holds an onshore oil exploration contract in Cagayan Valley, is raising almost $650,000 by selling shares.

Specifically, the company said it will raise $618,000 from a share sale to existing stockholders.

“It is intended that funds will principally be applied to the company’s primary activities in the biotechnology sector, and for general working capital purposes,” BioProspect said.

Stockholders can buy one new share for every three shares they hold. It will be underwritten by Novus Capital Ltd.

Meanwhile, BioProspect said it is completing a private placement to raise up to $24,000 before costs.

The private placement will be managed by Alto Capital.

BioProspect ‘s subsidiary Frontier Gasfields Pty. Ltd., holds a 30-percent stake in the Nassiping-2 project or Service Contract (SC) 52 that is undergoing a drilling program. Frontier Gasfield shouldered a quarter of the $4.4-million drilling works.

The SC 52 consortium is composed of Australia’s Frontier Gasfields (30 percent), local firm Frontier Oil Corp. (50 percent) and E.F. Durkee & Associates (20 percent).

Frontier Gasfields and local firm Trans-Asia Oil and Energy Development Corp. earlier signed a farm-in option agreement for SC 52 wherein Trans-Asia has the option to acquire 10 percent of the block upon payment of an agreed amount.

BioProspect said its unit Frontier Gasfields successfully drilled the onshore oil well early this year.

The company said more exploration will depend on thorough analysis of new and original well log data, pressure readings and previous flow test results.