Red Fork completes $47.7m share placement

Red Fork Energy has raised $47.7 million to continue development work at its Big River Mississippian project in the United States.

Red Fork said it would raise the funds through a two-tranche placement priced at 43 cents per share.

Euroz Securities and Cannacord Genuity acted as joint lead managers and bookrunners to the placement.

“We are delighted with the support shown for the placement, both from our existing shareholders and new institutional investors who recognise the significant growth potential of the company’s Mississippian project,” managing director David Prentice said.

“Over the past six months the company has demonstrated improved operational efficiencies leading to significant growth in production and reserves.

“The placement funds complement the expanded, low cost reserves based lending facility and ensures the company is well positioned to continue the pace of development at its Mississippian project.”

The capital raising is the third significant fundraising organised by Euroz in the oil and gas sector to date, with Rialto Energy seeking $21 million last month and Sundance Energy securing $48.1 million in May.