Livingstone to raise $1.5m to fund Forbes gas project

West Perth-based junior oil and gas explorer Livingstone Petroleum Ltd announced it would raise $1.5 million to be used to assist funding of the forthcoming six well program to be undertaken by the Forbes joint venture.

The placement was for 4 million shares at 38 cents and was undertaken to exempt investors through Hartleys Ltd.

At 1100 WST, shares in Livingstone were up .5 cents to 40.5 cents. The company listed on the ASX in September last year at an issue price of 20 cents.

On 1 June 2005, the company agreed to acquire a 50 per cent interest in the Forbes Gas project, located in the Sacramento basin, California (inland from San Francisco), from Orchard Petroleum Inc which owns the remaining 50 per cent of the project.

The company subsequently made a call on the partly paid shares raising a further $2.25 million. These funds paid for the acquisition of the 50 per cent interest in the Forbes Gas Project, leaving the company with a cash balance of approximately $1.7 million at 30 June 2005.

The company lodged an IPO prospectus on 11 August 2005 to raise $3 million, which was closed oversubscribed on 31 August.