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Antares Energy raises $5.96M to accelerate Texas oil and gas drilling

Published: 09:20 31 Jul 2013 AEST

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Antares Energy (ASX: AZZ) has raised $5.96 million to accelerate drilling activity at its Northern Star and northern extension of the Southern Star projects in Texas.

The funds were raised through the placement of 2.98 million convertible notes at $2 each and brings the total number of notes on issue up to 10 million with a face value of $20 million.

The company had earlier this month changed to the conversion rate of the notes to 1:3 from 1:1 with a strike price of $0.67.

This represents a 42% premium to yesterday’s closing price of $0.47 cents and a 55% premium to the $0.43 closing price on 5 July when a letter and circular resolution were sent to noteholders.
 
Antares is currently preparing to fracture stimulate the Robinson-2 well (100% interest) in the Southern Star project in mid-August and has completed fraccing of the Billie Jo 33-2 well (20%).

The Robinson-1 well has been in production for over 120 days at an average daily rate of 115 barrels of oil and 105,000 cubic feet of gas.

Partner Breitburn Energy Partners plans to spud the Nova 33-2 well (Antares 19.2%) in mid-August.

In the Northern Star Project, Antares is deepening the Debnam 22-1 well to a depth of 12,300 feet from the current 11,500 feet.

The tank battery and gas pipeline connection are complete to facilitate immediate flow back and production.

A multi-stage fracture stimulation will follow the deepening and be similar to the completion process used in Cozart 19-1.

 

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