Kodiak plans $7.5 million direct offering; Gulf to take in £32.13 million; Canacol upsizes sale

By Stephanie N. Rotondo

Portland, Ore., May 7 - Several oil and gas companies hoped to raise funds though the private placement market Thursday, including Kodiak Oil & Gas Corp., Gulf Keystone Petroleum plc and Canacol Energy Ltd.

Kodiak announced a $7.5 million registered direct offering of shares. Gulf Keystone said it arranged a £30 million standby equity agreement and had completed a £2.13 million stock sale.

Meanwhile, Canacol said it was increasing the amount it hoped raise in a unit placement due to market demand. The company is now planning to raise C$5.3 million, versus the C$5 million announced previously.

Elsewhere in the marketplace, Liquidmetal Technologies Inc. wrapped a $2.5 million placement of preferred shares. The shares are also convertible into common stock.

AgFeed Industries Inc. plans to take in $10 million via a private stock placement. The hog producer will use the funds to further its genetic programs.

Kodiak plans direct offering

Kodiak Oil & Gas will conduct a $7.5 million registered direct offering of stock, the company announced.

The Denver-based company will sell 10 million common shares at $0.75 per share in the non-brokered transaction.

Settlement is expected by May 11. Proceeds will be used for drilling activities and for other corporate purposes.

Calls made to the company seeking comment were not returned Thursday.

Kodiak's equity (Amex: KOG) gained 11 cents, or 15.28%, to $0.83. Market capitalization is $74.2 million.

Kodiak released its first-quarter results after the market closed Thursday.

Gulf to take in £32.13 million

In other oil and gas exploration company placements, Gulf Keystone Petroleum arranged a £30 million standby equity distribution agreement with YA Global Master SPV Ltd. The company also completed a private stock placement for £2.13 million.

Under the terms of the three-year equity agreement, YA Global will purchase stock up to £30 million at prevailing market prices.

Regarding the placement, the London-based company said it sold 14.66 million ordinary shares at 14.5p per share.

"It is intended that the funds raised, together with existing cash resources, will be used to drill exploration wells in Kurdistan, exploration and appraisal wells on the HBH Permit in Algeria and, in addition, to fund the capital expenditure required to progress the development of the HBH and RM gas fields in Algeria," the company said in a press release.

"With the pace of activity in Kurdistan picking up, the board decided it was prudent to secure medium-term funding in order to maintain that rate of progress," stated Todd Kozel, executive chairman, in the release. "The equity facility has the important benefit of being discretionary and as such will only be used as required but it does enable Gulf Keystone to quickly capitalize on opportunities and successes as they arise."

Gulf Keystone's shares (London: GKP) closed at 15.5p. Market capitalization is £57.2 million.

Canacol upsizes unit sale

In yet another oil company sale, Canacol Energy said it increased a private placement of units that had originally priced on April 28.

According to the amended terms of the deal, the company will sell C$5.3 million in units, as opposed to the original C$5 million. The units will contain one common share and one half-share warrant. The units will sell at C$0.125 and each whole warrant is exercisable at C$0.20 for two years.

"We are very pleased at the response to our offering, which has made it necessary to upsize the private placement financing from $5 million to $5.3 million," said Charle Gamba, president and chief executive officer, in a press release. "The additional capital will be used to fund contingent development activity in Colombia to increase production and revenues from our producing assets in 2009, as well as advance exploration projects in Guyana and Brazil for 2010 drilling and seismic acquisition."

Settlement is expected May 14.

Canacol's stock (TSX Venture: CNE) closed unchanged at C$0.13. Market capitalization is C$16.9 million.

Canacol Energy is a Calgary-based independent onshore oil exploration company.

Liquidmetal settles preferred placement

Liquidmetal Technologies wrapped a $2.5 million private placement of series A-1 convertible preferred stock on May 1, the company said in a regulatory filing.

The Lake Forest, Calif.-based producer of alloys sold 500,000 of the preferreds at $0.50 per share. The shares are convertible into common stock at $0.10 per share.

Holders of the preferreds will receive semi-annual dividends at 8% for the first two years and at 10% thereafter. The company can pay the dividend in cash or in kind.

Calls seeking comment were not returned Thursday.

Liquidmetal's equity (OTCBB: LQMT) increased 3 cents, or 8.57%, to $0.38. Market capitalization is $17 million.

AgFeed to sell equity

Animal feed producer AgFeed Industries plans to raise $10 million through a private placement of stock.

Under the terms of the deal, AgFeed will issue approximately 2.33 million common shares at $4.2925 per share. Investors will also receive warrants equal to an additional 1.16 million shares. The warrants are exercisable at $4.50 for five years.

"I am very pleased with our ability to acquire this type of equity financing given the nature of the global tight markets," stated Songyan Li, chairman and founder, in a press release. "It speaks well of how the investment community views AgFeed."

Proceeds will be used to develop its genetic program and for other growth initiatives.

AgFeed's stock (Nasdaq: FEED) fell 40 cents, or 9.26%, to $3.92. Market capitalization is $151 million.

AgFeed Industries, based in Beijing, is one of the largest independent hog production and animal nutrient companies in China.

Premier to issue converts

Premier Exhibitions Inc., an Atlanta-based salvager of artifacts from the RMS Titanic, will take in $12 million via a private placement of convertible promissory notes.

The three-year 6% unsecured notes were sold to Sellers Capital Master Fund Ltd. The notes are convertible into common stock at a 7.1% premium of $0.75 per share.

Premier has the option to prepay the notes prior to its 2009 annual meeting in exchange for warrants. The warrants would have to equal 7% of the common shares the notes would have equaled upon conversion, with a strike price of $0.70 for five years.

Calls seeking comment were not returned Thursday.

Premier's stock (Nasdaq: PRXI) dropped a penny, or 1.43%, to $0.69. Market capitalization is $20.2 million.

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