United States focused oil & gas producer AusTex Oil Ltd. (OTC: ATXDY) announced an equity capital raising to raise up to A$12.5 million, which will fund the appraisal and development of the company's acreage in the light oil sweet spot of the Mississippi Lime play.
The 0ffer comprises: a placement of approximately 83.3 million new fully paid ordinary shares to sophisticated and professional investors at a price of $0.12 per share, which raised $10.0million; and, a share purchase plan of up to $15,000 per eligible shareholder at the issue price to raise up to $2.5 million.
GMP Securities is sole lead manager and book-runner to the placement.
Net proceeds from the offer will be used to fund appraisal and development of AusTex's acreage in the light oil rich sweet spot of the Mississippi Lime play, including: participating in additional horizontal wells with Range Resources Corp. (NYSE: RRC), including an offsetting well to the highly successful Balder #1-30N; continuation of the two vertical well per month program at the company's 100% owned Snake River project in northern Oklahoma; drilling activity at AusTex's properties in Kansas; and pursuing opportunities to expand AusTex's acreage position via land acquisitions and joint ventures.
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