rights issue and placements concluded, page-10

PETROLEUM NEWS

http://www.petroleumnews.net/StoryView.asp?StoryID=1040131

Moby cashed up for Browse, Carnarvon wells

Thursday, 17 December 2009

MOBY Oil & Gas is looking forward to participating in the drilling of the Cornea, Braveheart and Artemis wells after raising just over $16.3 million.

The company said it raised $6,360,980 through a shareholder rights issue with a further $6 million raised out of the rights issue shortfall with the assistance of RBS Morgans Corporate.

The remaining funds were raised through a previous placement to clients of RBS Morgans Corporate and a placement to excluded offerees completed in November.

With the capital raising completed, Moby said it had obtained the necessary shareholder approvals to participate in the drilling of two wells in the Browse Basin and one well in the Carnarvon Basin.

The company has a 22.375% interest in the Cornea-3 well in WA-342-P of the Browse Basin. Cornea-3 was spudded on December 11 and is being drilled to assess the reservoir quality and oil production potential of the known Cornea oil and gas accumulation.

Once drilling operations at Cornea-3 are complete, the drilling rig would move to drill the Braveheart-1 well in WA-333-P, also in the Browse.

Moby will have a 26.4375% interest in the Braveheart-1 well which is targeting a potentially large oil or gas/condensate accumulation.

Moby believes success at Braveheart will transform the company financially.

The company will also participate in the drilling of the large Artemis prospect in WA-360-P of the Carnarvon Basin with a 15% interest.