Parafin and a private equity firm have both signed a term sheet whereby the private equity firm, based out of Wilmington, Delaware, will commit to purchase up to USD6m of shares of common stock of Parafin.
The investor is a private equity firm that invests capital into companies in the emerging markets.
It has invested in over 100 public and private companies in various sectors including oil and gas, communication, arts and entertainment, services and medical sectors.
Sid Fowlds, the chief executive of Parafin, says: "Once the final agreements have been executed, Parafin plans to immediately begin the 3-D re-processing of all existing seismic data. Having this capital moves Parafin closer to our goal of drilling our first well by the end of summer this year. The remainder of proceeds will be used to meet working capital needs as the company prepares to drill."
