News: Cossack Energy completes $2.5M placement for Polish oil and gas hunt

Cossack Energy (ASX:COD) the oil and gas explorer with assets in Ukraine and Poland, has received commitments to raise $2.5 million through the placement of 83,333,333 shares at $0.03.
 
Each two Placement Shares issued will have an attaching free option issued on the same terms and conditions as the current entitlement offer options with an exercise price of $0.08 and an expiry date of 30 June 2015.

Last week, Cossack has executed a Binding Heads of Agreement with Iskander Energy to acquire their 24% Working Interest in the Bieszczady Project in Poland.

As contemplated in the HoA, the Company paid a deposit of US$200,000 to Iskander on 4th June 2014 to move into an extended period of exclusivity, which will afford the Company further time for to conduct more in-depth due diligence.

Should Cossack decide to proceed with the acquisition, it will pay a further US$800,000 to Iskander with US$500,000 payable on Settlement in early July and the remaining US$300,000 payable by 31 December 2014.

In addition, final stages of processing of the recently completed seismic program on the southern portion of Cossack's flagship Limnytska Licence area are due within weeks.

The company expects current interest from western based companies to farm in to the Limnytska Licence to move into the negotiation stages post review of the fully processed data.