Sun Resources has announced a $20 million share placement to fund drilling and development at its Woodbine oil projects in south Texas.
The Perth-based oil and shale gas junior said the placement, priced at 5 cents per share, would be made primarily to sophisticated investors and clients of Hartleys stockbrokers.
Sun Resources directors have subscribed for $585,000 in the placement.
The company said the capital raised would be used to fund further growth at the Woodbine oil project, including the Beeler #1H well and a potential two other wells, and to acquire a further 1,653 net acres in the Delta oil project, also in Texas.
Managing director Matthew Battrick said the company was pleased with the strong response to the placement and was looking forward to the development of the Beeler #1H well.
“Sun has been extremely successful in growing a material footprint in the Woodbine oil play since committing to this strategy only a little over 12 months ago, and we are looking forward to continuing to grow this position and unlocking the significant value of this large position,” Mr Battrick said.
At 11:30AM, WST, Sun Resources stocks had slipped 5.2 per cent, trading at 5.4 cents.