Comet Ridge launches $4.3m cap raising

Mt Pleasant-based oil and gas explorer Comet Ridge Ltd has launched an entitlement issue to raise up to $4.3 million in extra funds for its projects in the United States and Australia.

The pro rata 1 for 4 non-renounceable entitlement issue comprises approximately 26.2 million new fully paid ordinary shares in the company priced at A$0.165 per new share.

The proceeds of the offer will be used to fund Comet Ridges' share of the drilling of up to five wells on the Florence project in Colorado and to fund its ongoing activities on the Grays Harbor, Tow Creek/Bear River and Chehalis projects in the US and on its Australian projects.

Shareholders who hold ordinary shares in the company as at 5.00pm WST on Tuesday, 29 January 2008 will be entitled to participate in the offer.

Comet said if the full amount of approximately $4.3 million was not raised under the entitlement Issue, it would consider other options including additional debt funding, reducing the number of wells in the drilling program or reducing its interest in some of the wells.

The entitlement issue is not underwritten and will closed on February 19 with new shares issued no later than February 22.