Elk Petroleum has completed a $5 million capital raising to fund the expansion of the Ash Creek oil field on the border of Wyoming and Montana in the United States.
Elk said it had received firm commitments from institutional investors for $4.25 million placement and a $750,000 share purchase plan, both priced at 25 cents per share.
DJ Carmichael is lead manager to the placement and purchase plan.
Elk managing director Bob Cook said the company was extremely pleased with investors’ response.
“The capital raising is to provide funds to further Ash Creek operations and also to fund the pursuit of new acquisitions in line with our growth plans for Elk,” Mr Cook said in a statement.
“These value accretive opportunities exist now and management wish to be in a position to conclude negotiations which are unlikely to wait for cash flow from either the Grieve or Ash Creek EOR project’s production.
“Importantly, Elk is in a growth mode.”
At close of trade today, Elk stocks had slipped 11.3 per cent, trading at 27.5 cents.
