Completes Placement to Stage 1: Oversubscribed
Sydney, Mar 5, 2012 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK) (OTCQX:ATXDY) is pleased to announce that it has completed Stage 1 of the placement announced to the ASX on 20 February 2012 to continue its oil and gas drilling and exploration programs in the USA.
Stage 1:- Placement - Pursuant to ASX Listing Rule 7.1 - $2.67m
As a result of strong support from sophisticated and professional investors including existing shareholders, demand for the placement was significantly oversubscribed. Accordingly, the Company has decided to increase the amount to be raised pursuant to Stage 1 of the placment from AUD$1.8m to AUD$2,677,500 which remains within the Company's capacity to place securities under ASX Listing Rule 7.1. The total number of fully paid ordinary shares to be issued in Stage 1 is 31,500,000 at an issue price of $0.085 per share with a free attaching option for every three shares subscribed for, resulting in the issue of 10,500,000 unlisted options with an exercise price of $0.15 per option expiring on or before 5 March 2014. An Appendix 3B in relation to Stage 1 of the placement follows.
Stage 2: Placement - Subject to Shareholder Approval
As previously reported, Stage 2 comprises the proposed issue of 16,470,590 shares and 5,490,197 unlisted options on the same terms as Stage 1 to one of the directors of the Company, Mr K H Hung, to raise an additional AUD$1.4 million. The placement to Mr Hung is conditional upon the approval of shareholders to be obtained at an Extraordinary General meeting (EGM) to be held in early April. A Notice of Meeting will be sent to shareholders shortly.
Use of Funds:
The funds from both stages will be used primarily for the continuation of the Company's exploration and development drilling program on its oil and gas leases in Oklahoma and Kansas including seismic , and also for general working capital purposes.
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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