23/11/2007 - 08:14

Entek raises $2.7m in placement

23/11/2007 - 08:14

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West Perth-based oil and gas explorer Entek Energy Ltd has raised $2.7 million through a placement to replenish its cash resources, the company has announced.

West Perth-based oil and gas explorer Entek Energy Ltd has raised $2.7 million through a placement to replenish its cash resources, the company has announced.

 

 

The full text of a company announcement is pasted below

Entek Energy Limited (Entek) is pleased to announce a placement of approximately 15,000,000 ordinary shares to raise approximately $2.7 million to cover the Company's forward work program.

The Company has completed negotiations with stockbrokers to raise approximately $2.7 million by a placement of ordinary shares at $0.18 each to sophisticated investors.

These funds will replenish the Company's cash resources for funds of US$915,000 already applied to block sunk costs and drilling expenses for well OCS-G 24420 Well # 2 in High Island Block A300 and provide contingency for a follow-up well and completion of both wells in the event of discovery.

Funds will also be applied to the acquisition of the Garden Banks Block 115 which contains the Cascade Prospect. Entek was high bidder at US$460,088 on the block at the Central GOM lease sale 205 on October 3rd 2007.

The remainder of the funds will be applied to working capital.

This issue of shares does not exceed 15% of the Company's issued capital and therefore does not require shareholder approval

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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