Incremental Oil and Gas has completed a $4.6 million capital raising to explore and develop its Florence oilfield in Colorado.
The Perth-based company said the placement, which was managed by Bell Potter Securities, was priced at 23 cents per share.
The funds will be combined with a $US8 million finance facility and cash reserves to aggressively drill and develop the Florence field, targeting the Pierre Shale, which has produced nearly 16 million barrels of oil to date.
Incremental managing director Gerry McGann said three new well locations had been chosen at Florence, and applications to drill would be lodged in coming weeks.
“The Florence Oilfield has been purchased at an excellent price and continues to produce as expected,” Mr McGann said in a statement.
“The Pierre will generate substantial revenue for many years. Meanwhile, geological work continues on gaining a better understanding of the deeper Niobrara reservoir that has the potential to be hugely productive and profitable via fracced horizontal wells.”
