Dallas-based Energy Hunter Resources Inc. completed a private placement of 3.15 million common shares for gross proceeds equal to about $3.15 million of new common equity capital.
The private placement offering initially consisted of 2.5 million shares priced at $1 each. Gary C. Evans, the company’s chairman and CEO, personally invested 10% in the offering. Increased demand for the offering had it oversubscribed by about 25%, increasing the total gross proceeds from the original $2.5 million.
A portion of the proceeds from the private placement were used to acquire two lease acreage blocks in the heart of the Eagle Ford Shale, along the Karnes Condensate Trend, in Karnes County, Texas.
The company has targeted undisclosed acreage blocks in the Permian Basin, and mineral rights in the Marcellus and Utica Shale, which it is negotiating to acquire.
The separate lease blocks in the Karnes Condensate Trend total about 500 net acres, and the total acreage position is prospective for both the Lower and Upper Eagle Ford Shale, as well as the Austin Chalk Formation.
There are no drilling commitments on this acreage until 2017.
Energy Hunter owns 87.5% of the working interest in these properties, and will be the operator of record on all new wells drilled.
About 14 wells can be drilled in the Lower Eagle Ford Formation between the two prospects, as well as an additional 10 wells in the Upper Eagle Ford Formation, for a total of 24 wells, excluding the Austin Chalk Formation and potential drilling sites therein.
Combined, total recoverable reserves are estimated at 16 million barrels of oil equivalent.
Remaining proceeds from the offering will also support general corporate purposes.
Energy Hunter also said it plans to undertake an IPO.
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