Salinas Energy raises $6m in placement

East Perth-based Salinas Energy has raised $5.7 million through a heavily oversubscribed share placement, with part of the funds to be applied towards new venture opportunities in South East Asia.

In total, 42 million shares were issued at a discounted 13.5 cents each. Shares in Salinas were down half a cent to 15c at 11:53 AEDT.

The placement, made to institutional and sophisticated investors, was managed by Patersons Securities.

The funds will allow Salinas to aggressively pursue new venture opportunities in South East Asia, continue to evaluate the 100 per cent held Vietnam Block 120 asset and provide additional working capital to fund short term development and appraisal projects at the 100 per cent owned North San Ardo and Paris Valley projects.

Short term activity will be focused on drilling an appraisal well at Paris Valley in early December. This first well will be drilled in the northern compartment of the field which has the potential to contain in the region of 34 million barrels of recoverable resource.

Salinas will also change its name to Neon Energy soon.