09/12/2011 - 09:57

Red Fork raises $28m for Oklahoma drilling

09/12/2011 - 09:57

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Red Fork raises $28m for Oklahoma drilling

Perth-based petroleum explorer Red Fork Energy has secured $27.9 million through a share placement, the company announced today.

The Oklahoma-focused company said it placed 40.46 million new ordinary shares at 69 cents per share to sophisticated and professional investors.

Perth-based Euroz Securities acted as lead manager, while E.L. & C. Baillieu Stockbroking acted as broker to the offer.

Red Fork said the capital raised would ensure the company could pursue an aggressive operated drilling program, maintain its leasing initiative and fund participation in a number of non-operated drilling opportunities in its Mississippian development program.

Red Fork managing director David Prentice said support for the placement followed favourable production testing results from the Tahara #1-28 well.

“We are looking forward to continuing and expanding our current operated Mississippian drilling campaign and actively participating in non-operated wells in play,” he said.

“We appreciate the very strong support for this placement, from existing and new institutional investors who recognise the growth potential of our large position in one of the premier liquids rich plays in the United States.”

Red Fork shares were down 2 cents to 78 cents at 9.55am WST.

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