Antares raises $10 million

Antares Energy has raised $10 million from institutional investors towards drilling activity at its Northern Star project in West Texas.

Antares said today it had received commitments for the purchase of 5 million convertible notes at an issue price of $2 per note.

A total of 15 million convertible notes will be on issue as a result of the placement, with a face value of $30 million.

Antares announced in August that it had signed a binding letter of intent to sell its Permian Basin oil and gas assets, including the Southern Star, Northern Star and Big Star projects, to an undisclosed buyer for $US300 million.

The company expects to finalise the transaction by mid-January.

Antares shares were steady at 50 cents at 11:00AM WST.