Funds will go towards development drilling activities at the Mustang Oil Field within the company’s 17,000-acre tenure in the eastern shelf of Texas’ Permian Basin as well as the continued assessment of identified prospects and general working capital.
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Winchester Energy managing director Neville Henry said: “Recently drilled discovery well White Hat 20#3 at the Mustang Oil Field has already provided the company with enhanced revenue in a short period.
“This highly successful capital raising will provide the company with adequate funding to immediately commence the drilling of a series of high-confidence development wells which have the potential to enhance oil production.
“The next Mustang well will spud in the coming weeks and the company will also immediately commence completion activities at the Arledge 16#2 well at the Lightning prospect which recorded a highly encouraging 45 feet of calculated net oil play in Cisco Sands.”
The placement, managed by CPS Capital Group Pty Ltd (CPS) was offered to investors satisfying the requirements of either s708(8), 708(10) or 708(11) of the Corporations Act.
Settlement of the placement shares is expected to occur on or around August 14, 2019.
CPS will receive a placement free of 6% of the funds raised by CPS.