Real Energy Corporation (ASX:RLE) has been a very closely watched stock recently by investors, and with good reason.
Real Energy is focussed on the Cooper Basin in Queensland, and recently spudded the Queenscliff-1 well to confirm the presence of gas in the Toolachee and Patchawarra formations, which is downdip from the company's previously spudded Tamarama-1 well.
Tamarama-1 intersected 87 metres of strong net gas pay in the two formations, supporting the theory that a basin centred gas play is present in its acreage.
Success at Queenscliff, the company’s second exploration well in the Cooper Basin, will confirm the presence of basin centred gas and determine reservoir productivity.
A secondary objective is to obtain samples from the Toolebuc Shale to further knowledge of this potential shale oil play.
The company is now heading to market with a capital raising.
The ASX has granted the company a trading halt, with its shares placed in pre-open.
The halt will remain in place until the opening of trade on Monday 20th October 2014, or earlier if an announcement is made to the market.
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