By John Lee.
WesternZagros Resources has announced the successful closing of its rights offering which expired on November 14, 2014.
The Rights Offering, together with the equity backstop arrangement provided by the Company's largest shareholder, Crest Energy International LLC, generated CDN$200 million in gross proceeds to the Company which will be used to fund development costs on the Company's Kurdamir and Garmian blocks in the Kurdistan Region of Iraq and for general and administrative purposes.
Simon Hatfield (pictured), WesternZagros's Chief Executive Officer, said:
"We are very pleased to have successfully completed the rights offering and related equity backstop arrangement with Crest which secures the financing necessary to bring our significant oil and gas discoveries into production and generate cash flow.
"With our financing secure, we look forward to progressing the development of these assets with our co-venturers and the Kurdistan Regional Government. I want to thank all of our shareholders who participated in the rights offering for their ongoing support of WesternZagros and especially wish to thank Crest for its unwavering support and confidence in WesternZagros and the significant value potential of our substantial oil and gas resources."
FirstEnergy Capital Corp. acted as dealer manager and Kingsdale Shareholder Services acted as information agent for the Rights Offering.