Nido Petroleum selling up to $40 mln of shares

HONG KONG, May 27 (Reuters) - Australia's Nido Petroleum Ltd (NDO.AX) was selling as much as $40 million worth of shares at 3.8 percent to 7.7 percent discount to the firm's closing price on Monday, according to a document sent to investors on Tuesday.

The company was selling 62.5 million new shares with an upsize option of 20 million additional new shares, or 7.85 percent of its enlarged share capital, at A$0.48 to A$0.5, the document said. The shares closed at A$0.52 on Monday.

The proceeds will be used for oil production, exploration and working capital.

The share sale is handled by CLSA and Merrill Lynch MER.N.

(US$1=A$1.04)

(Reporting by Kennix Chim, editing by Keiron Henderson)