AOI ChartLukas Lundin’s Africa Oil (AOI:TSXV) announced a $450 million brokered private placement.  The company is issuing 56.5 million shares at $8.25 per share and will be placed on a best efforts basis through Citigroup, Dundee and Pareto Securities.  The company claims to have good support for this financing with its existing shareholders as well as new institutions, which I do not doubt.  The company has been hugely successful since making its discovery in early 2012 shooting the stock from less than $2.00 to over $11.50 per share.

AOI has budgeted roughly $209 million for exploration and appraisal work in 2013, 75% of which is dedicated to drilling.  The company didn’t earmark this money for anything in particular, but the company has over 100 more targets and anticipates having six drill rigs going by the end of the year.  They have been extremely efficient in their drilling campaign thus far and they expect to drill five more basin opening wells over the next six months.

The stock was halted and remained halted at the time of writing.