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Gold/Mining/Energy : Big Dog's Boom Boom Room -- Ignore unavailable to you. Want to Upgrade?

To: DewDiligence_on_SI who wrote (140703)	10/4/2010 4:55:01 AM
From: elmatador	Read Replies (1) \| Respond to of 206146

PBR expanded its offer of new shares by more than three billion dollars, bringing the total to 71.6 billion dollars -- the largest capitalization in history. Brazil's Petrobras expands share offer to $71.6 bln (AFP) – 1 day ago RIO DE JANEIRO — Brazil's state-run oil giant Petrobras has expanded its offer of new shares by more than three billion dollars, bringing the total to 71.6 billion dollars -- the largest capitalization in history. The company said in a statement late Friday that its board agreed to release 188 million more shares -- 75 million voting shares and 113 million preferred shares -- in the face of strong demand. The extra issue raised 5.2 billion reais (3.1 billion dollars). The total capitalization surpassed the previous biggest share issue on record: that of Japan's Nippon Telephone and Telegraph Corp. in 1987. That NTT issue raised 36.8 billion dollars at the time, equivalent to 68.6 billion dollars in today's money when adjusted for inflation. Petrobras launched its capitalization September 24 in New York and September 27 in Sao Paulo. The inflow of capital makes it the third-biggest oil company by that measure in the world, after Exxon of the United States and China's PetroChina. The Brazilian government purchased nearly two-thirds of the new Petrobras shares, strengthening its hold over Latin America's biggest company. Petrobras intends to use the capital as the core of an ambitious 224-billion-dollar investment plan over the next five years that will give it the means to tap potentially vast offshore oil fields. The company estimates the so-called subsalt fields off Rio de Janeiro's coast could more than triple its existing proven oil reserves of 14 billion barrels. That would catapult Brazil into the top tier of the Organization of the Petroleum Exporting Countries. Brazil is not currently a member of the group. But to get at the black stuff, Petrobras will have to overcome a series of costly technological challenges unprecedented in the oil industry. The company, a world leader in deep water oil exploration, is confident it will be able to do so.