Emerald to raise $2m for US, WA projects

West Perth-based Emerald Oil & Gas NL has reached an in principle agreement with Capital Investment Partners Pty Ltd to raise up to $2.025 million for exploration and production activities in the United States and Western Australia's Canning Basin.

The placement will issue up to 22.5 million shares at $0.09 each with a free attaching 1 for 1 listed option expiring in May 2008, will be made predominantly to international and domestic clients of CIP.

The placement will be completed in two tranches with the first placing 4.5 million shares at $0.09 and 4.5 million options to raise $405,000 (within the 15 per cent share issue capacity) and anticipated to close on or about 23rd January 2008; and the second tranche placing 18 million shares at $0.09 and 18 million options to raise $1.62 million which is subject to shareholder approval anticipated in late February 2008.

The funds will enable Emerald to progress its exploration and development projects in Australia and USA, including re-testing the Stokes Bay#1 well at the EP104/R1 project in the Canning Basin, and initial exploration at EP 4-05/6 licence (100 per cent EMR) following completion of native title negotiations.