Perth-based oil and gas explorer Odyssey Energy Ltd will raise $4 million through the placement of 10 million shares at 40 cents each to fund development of wells on its Jester-Bloomington field areas, the company has announced.
Perth-based oil and gas explorer Odyssey Energy Ltd will raise $4 million through the placement of 10 million shares at 40 cents each to fund development of wells on its Jester-Bloomington field areas, the company has announced.
The placement will go to clients of Tricom Equities, Stripe Capital and Cunningham Securities, the company said in an announcement.
Odyssey also plans to undertake a rights issue to all existing and new (placee) shareholders on a 1 for 3 basis for a listed option exercisable at $0.50 on or before 31 December 2009, at an issue price of $0.03 per option.
The full text of a company announcement is pasted below
The Board of Odyssey Energy Limited ("Odyssey" or "Company") is pleased to announce that development drilling at the Jester-Bloomington project is scheduled to commence in late October 2007.
An initial program of 10 to 15 wells will infill acreage surrounding some of the most prolific producers from the original 1950's through 1980's development of the North Bloomington, Willow and Jester-Bloomington Field areas, with an initial focus on the north-eastern sector of the 30,000 acre project area.
The primary objective of the program is to begin the development of the project's 68 Bcf certified reserve base in the Brown Dolomite and Granite Wash reservoirs, and in the process rapidly increase the Company's production and cash flow. A number of wells are expected to be drilled, completed and tied into existing production infrastructure pre-Christmas and be selling gas into the North American winter and traditional period of peak demand.
The first wells in the program will also fall within the Company's area of interest for the Wellington Limestone - the subject of a 'high impact' work-over program announced last week, which targets the potential for bypassed gas pay in a number of existing wells on-trend from two prolific producers. If these wells are successful in the Wellington they will not only further boost production and cash flow, but may also lead to certification of significant new proved and probable reserves for the project.
Odyssey has secured funding for the Jester-Bloomington development program, together with additional working capital for its operations at North Helper in Utah and Business Development activities through the placement of 10 million shares raising $4.0 million before costs to clients of Tricom Equities, Stripe Capital and Cunningham Securities. The Company will also undertake a rights issue to all existing and new (placee) shareholders on a 1 for 3 basis for a listed option exercisable at $0.50 on or before 31 December 2009, at an issue price of $0.03 per option.
