• Placement of 411.8 million new shares at $0.017 per share
• Each placement share to have one attaching option ($0.02 exercise, 1-year expiry)
• One bonus option ($0.03 exercise, 3-year expiry) for every two attaching options exercised

Melbana Energy Limited (ASX: MAY) has announced the completion of a $7 million placement to existing and new sophisticated and professional investors. The placement comprises the issue of 411,764,706 new fully paid ordinary shares at $0.017 per share, representing a 22.7% discount to the last closing price. Each placement share will have one attaching option with an exercise price of $0.02 and a one-year expiry. Additionally, one bonus option with an exercise price of $0.03 and a three-year expiry will be issued for every two attaching options exercised. The issuance of the attaching and bonus options is subject to shareholder approval. All Melbana directors have agreed to subscribe to the placement for a total aggregate amount of $120,000, also subject to shareholder approval. The proceeds from the placement will be used towards the company's share of drilling costs for the Amistad-2 production well and for general corporate purposes.