Jupiter Energy (ASX: JPR, AIM: JPRL) has raised US$9 million through the issue of convertible notes to advance exploration of its oil and gas assets in Kazakhstan and build its working capital.
Proceeds from the fund raising will be used to repay US$3 million of Promissory Notes held by Mobile Energy, complete and test operations on the J-59 well and initial design and planning for the Akkar East topside infrastructure.
It will also be used to purchase long lead time items required for the 2013 drilling program with the remaining US$3.2 million added to its general working capital.
Jupiter is also in discussions with several banks and institutions for project finance and reserve-based debt for development of Akkar East.
The notes have a three year term with a coupon rate of 12% per annum, payable quarterly in arrears.
Each note has a conversion price of US$1.25 per share and may be redeemed by Jupiter at any time with a minimum of 12 months interest payable if the Convertible Notes are redeemed within the first 12 months of their term.
Subscribers are Waterford Petroleum (US$3 million), Soyuzneftegas Capital (US$2 million), Weighbridge Trust (US$1 million) and Mobile Energy (US$3 million).
The Akkar East development includes the J-50, J-51 and J-52 wells that are currently on trial production.
The average daily flow rate from the three wells in March was about 300 barrels of oil per day, 400bpd and 400bpd respectively, when not constrained by processing capacity at the Atyrau refinery.
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