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Interra places out 13.6% stake at S$0.059 per share

AN existing business partner of Interra Resources is buying a 13.6 per cent stake in the oil and gas production company for US$3.48 million, or S$0.059 per share.

China ZhenHua Oil Co, which has a joint venture with Interra in Myanmar, will also get to nominate a director to Interra's board after the placement.

The placement price represents a 1.667 per cent discount to Interra's volume-weighted average price of S$0.06 on Thursday, which was the last trading day before the Friday placement.

The placement will raise US$3.48 million, of which US$10,000 will go to placement-related expenses. The remaining net proceeds will be used for general corporate purposes.

If the placement had been completed on Jan 1, 2017, earnings per share for the nine-month period ended Sept 30 would have been 0.037 US centinstead of the reported 0.042 US cent.

China ZhenHua Oil holds 40 per cent of Goldpetrol Joint Operating Co Inc, which operates Interra's Chauk and Yenangyaung fields in Myanmar. Interra owns the remaining 60 per cent.