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Xstate Resources to raise cash

Xstate Resources to raise cash

Xstate Resources (ASX:XST) is likely to raise cash with its shares in a trading halt pending an announcement.

The halt is likely to be in effect until an announcement is made or the start of trade on 18 February.

Xstate had said late last year that it had signed a binding Heads of Agreement with major shareholders of Bombora Energy to acquire around 75.90% of shares on issue in Bombora that would give Xstate exposure to about 20,000 gross acres of oil and gas leases in California.

Bombora has a 22.55% working interest in a lease that is prospective for oil in California. That lease is in the prolific oil rich Monterey Formation, which has been producing oil for over hundred years and has produced in excess of 2 billion barrels.

The agreement with Bombora also includes its working interest of 6.67% in the West Brentwood, which covers about 3,000 acres of high quality seismic data. The agreement with Bombora will take Xstate's interest in the project to 23.33%.

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Xstate Resources Ltd Timeline

February 15 2017
August 31 2015

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