West Perth-based exploration company Range Resources plans to raise $7 million through a non-renounceable rights issue to fund projects in Georgia and Texas.
Under the deal, shareholders will be entitled to acquire one new ordinary share for every four existing shares held at the record date at an issue price of $0.05 per share.
Shareholders on the UK register will be eligible to participate.
In a statement today, Range executive director Peter Landau said the company was in final negotiations with a number of interested parties to have the rights issue fully underwritten.
"As part of the company's ongoing financing needs for Georgia and Texas, in conjunction with the rights issue, a placement has been completed to institutional and sophisticated investors under the same terms as the rights issue to raise approximately $2 million through the issue of 40 million ordinary shares," he said.
Range's main focus remains in Puntland, Somalia where it holds a 20 per cent working interest in two production sharing agreements for the Nogal and Dharoor Blocks.
In July 2009 the company entered into a heads of agreement with the private UK company Strait Oil and Gas to acquire a 50 per cent interest in two oil and gas blocks in the Republic of Georgia.
These concessions encompass two highly prospective hydrocarbon basins covering an area of 81,000sqkm or more than 20 million acres.
In September last year, Range acquired a 25 per cent interest in the North Chapman Ranch project in Nueces County, Texas.
US-based private oil and gas company Crest Resources Inc operates the project where drilling of the first well has commenced.
The project is in one of the most prolific oil and gas producing trends in the state of Texas.
