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 Australian Oil Company Limited
Australian Oil Company Limited (ASX:AOK) (OTCMKTS:SGCSF) is an Australian-based energy company focused on under-explored, recently over-looked, world class oil and gas opportunities near under-supplied markets. The Company is currently focussed on conventional oil and gas exploration and production in the Sacramento Basin in California. Australian Oil has a portfolio of natural gas and oil producing wells in addition to prospects and discoveries at various exploration and appraisal stages. AOK is in the process of evaluating the acquisition of oil and gas producing and exploration assets to enhance the Company's strategic needs and deliver shareholder value.
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