Audax Resources has completed a capital raising worth more than $2.5 million from sophisticated and institutional investors, including a London fund and clients of another London firm for a drilling program near Tunisia.
RAB Energy Fund of London and clients of London-based Truestone Capital contributed a placement of 25 million shares at an issue price of 10 cents per share, raising $2.516 million.
The placement was oversubscribed.
The funds will be used for the placement of a bond with the Tunisian government for the Kerkouane licence as well as working capital for the company.
The licence is the next step towards the drilling of the Sambuca prospect proposed for the first half of next year.
Currently 15 drilling contractors are considering the invitation to tender for drilling services of a semi submersible rig.
The prospect consists of two exploration permits: one off the coast of Sicily in Italian waters and the other offshore, north east of Tunisia.
The company said the prospect is one of the largest undrilled structures in the Mediterranean Sea, with a total P50 unrisked recoverable resource potential of 270 million barrels of oil equivalent.
The total P50 unrisked recoverable resource of the mapped prospects in both permits could exceed one billion barrels of oil equivalent.
Drilling of the Sambuca well is expected to start in either the first or second quarter next year, subject to the availability of a suitable rig.
