Pancontinental Oil & Gas NL has resolved to raise up to $15 million through a placement of up to 200 million shares at an issue price of 7.5 cents per share to sophisticated and professional investors.

Pancontinental's corporate advisor, Hartleys Limited, is lead broker to the Placement.

Under the Placement the Company has agreed to place shares predominantly to Investment Funds in London, elsewhere overseas and in Australia.

The funds raised pursuant to the Placement will be used to fund the following- ■ Seismic program over Kenya L10A & L10B; ■ Seismic program over Kenya L6; ■ Seismic program over Namibia EL37; ■ Pursue further growth opportunities in the oil and gas sector; and ■ General working capital.

Pancontinental's CEO Barry Rushworth commented,'We are very pleased by the outstandingly strong support received for the Placement, which will see the entry of several of the world's largest and most well respected institutional investors onto the Pancontinental share register.

The strength of interest in the Placement will ensure Pancontinental is well funded for exploration activities in its African licences in what we believe will be a transformational year as we look forward to, amongst other activities, drilling on the giant Mbawa Prospect.

We have African joint ventures alongside some of the industry's most successful oil and gas companies and we now have an expression of support from some of the world's leading investment funds.

This is a powerful validation of Pancontinental's corporate oil and gas ambitions in Africa'.

The Placement will be completed in two tranches with up to 99.1 million shares being issued in tranche one pursuant to the Company's 15% capacity under ASX Listing Rule 7.1 and the balance of up to 100.9 million shares being issued in tranche two, subject to shareholder approval at a General Meeting of shareholders currently scheduled for Monday, 9 January 2012. FirstEnergy Capital LLP acted as a sub-placement agent in relation to the Placement.

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