logo-loader

Austin Exploration raising up to $3.3M for oil and gas drilling

Published: 18:00 23 Sep 2015 AEST

au_united_states350_560240af32a1d

Austin Exploration (ASX:AKK) is raising up to $3.3 million through a two for three rights issue priced at $0.015 to fund drilling across its Colorado, Kentucky and Mississippi oil and gas assets.

This represents a 25% discount to the share price of $0.02 as at 22nd September 2015. Shares in AKK are currently trading at $0.017.

The rights issue includes one free attaching option exercisable at $0.03 on or before 18th September 2017 for every two shares subscribed.

Directors in the company have indicated their intention to take up their full entitlements under the rights issue.

Should the company raise the full amount, it will spend $1.5 million on drilling at the Pathfinder Prospect in Colorado, $500,000 in Mississippi and $500,000 in Kentucky.

The remainder will be used for working capital and expenses of the offer.

Drilling is focused on company-operated vertical wells that have lower development and completion costs.

The company had $1.87 million in cash as at 30th June 2015.

 

Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX emerging companies with distribution in Australia, UK, North America and Hong Kong / China.

Australian Strategic Materials signs US$600 million LoI

Rowena Smith, CEO and managing director of Australian Strategic Materials Ltd (ASX:ASM, OTC:ASMMF), joins Jonathan Jackson in the Proactive studio to discuss the company’ s Dubbo Project, in Central West New South Wales. This project aims to extract and process critical minerals and rare earth...

6 hours, 45 minutes ago