AusTex Oil Announces AU$3.2m Placement to Investors
Sydney, Feb 20, 2012 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to announce that it has finalised arrangements to raise $3.2m through a share placement of 37,647,060 fully paid ordinary shares in the capital of the Company at $0.085 per share with one free option for every three shares subscribed for. The options will have an exercise price of $0.15 to be exercised within 2 yrs of the date of issue. The Placement will be conducted in two stages with the first stage to be made to Australian sophisticated and professional investors and international investors, and the second stage, which is subject to shareholder approval, to a Director of the Company.
Stage 1: Placement - Pursuant to ASX Listing Rule 7.1
Stage 1 comprises a placement of 21,176,470 shares at $0.085 per share and 7,058,824 options to raise a total of AUD$1.8m. Stage 1 is not subject to shareholder approval and will be conducted pursuant to the Company's capacity to issue new shares pursnat to ASX Listing Rule 7.1
Stage 2 Placement - Subject to Shareholder Approval
Stage 2 comprises the proposed issue of 16,470,590 shares and 5,490,197 opions to one of the directors of the Company, Mr K H Hung and his associated entities, also at $0.085 per share to raise a total of AUD$1.4 million. The placement to Mr Hung is conditional upon the approval of shareholders to be obtained at an Extraordinary General Meeting to be held in early April.
Use of Funds:
The funds from both stages will be used primarily for the continuation of the Company's exploration and development program on its oil and gas leases in Oklahoma and Kansas and also for general working capital purposes.
Draft Indicative Timetable [subject to change]:
- Placement Settlement Date: 27 February, 2012
- Allotment & Despatch of Holding Certificates: 28 February, 2012
- Placement Shares Tradeable on Australian Stock Exchange: 28 February, 2012
- Notice of EGM 4 March, 2012
- Approximate date of EGM: 5 April, 2012
- Settlement of Director Placement: 19 April, 2012
Commenting on the new funding arrangements, Mr Daniel Lanskey, AusTex's Managing Director, said:
"Following our recent successes with wells in the Mississippi Lime in Northern Oklahoma, this funding will enable us to continue the development of our oil and gas leases, accelerate drilling and continue to grow our oil production".
About AusTex Oil Limited
AusTex Oil Limited (ASX:AOK) (OTCQX:ATXDY) is a Public Company listed on the Australian Securities Exchange (ASX) and the OTCQX.
AusTex is focused on exploration and development of oil and gas leases in the USA. The company produces oil and gas in Oklahoma and Kansas and is currently developing producing leases in both states with interests in 11,600 net acres of oil and gas leases in the Mississippi Lime Play. The Company has net production of circa 800 boe/day with Independent 1P reserves certified at 3.505 Million BOE with NPV10 of US34.8 million as at 31 December 2015.
US operations are based in Tulsa, Oklahoma, with an office at 1801 East 71st Street. International Energy Corporation (Oklahoma) is a wholly owned subsidiary and a licensed oil and gas operator in Oklahoma and Kansas.
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