Golden Gate raises $5.2m from placement

West Perth-based oil and gas player Golden Gate Petroleum Ltd has agreed to place 24.7 million shares at 21 cents each to raise $5.2 million to advance its Bullseye and Wilcox projects in the United States.

Four of the company's directors, Messrs Graves, Freeman, Copley and Petruzzelli, have agreed to subscribe for 850,000 shares, and will seek shareholder approval for the move at a meeting to be announced shortly.

Golden Gate said the placement would provide it with adequate funds (including production revenue of $700,000 net per month) to move forward with its drilling objectives next month at operations in Texas and the Louisiana Gulf Coast region of the US.