Africa Oil says intends to raise $100 mln in private placement, make impairments

Africa Oil said on Thursday it planned to raise $100 million in a private placement and that it would take impairment charges related to its assets in Puntland, Somalia.

It said the private placement would be of new common shares and that Dundee Securities Europe LLP and Pareto Securities would act as joint bookrunners.

The company said it would record a non-cash impairment charge related to its assets in Puntland in the fourth quarter of 2014 and would refrain from any operational activity until the political situation improved.

Sept. 30, intangible exploration assets related to these properties amounted to $91 million, Africa Oil said.