Perth-based petroleum player Samson Oil and Gas Ltd has lodged a prospectus to raise $27.3 million to fund the acquisition of oil and gas production assets located in the Green River Basin, Wyoming, United States.
The prospectus invites subscriptions for up to 65 million new shares at an issue price of 42 cents per share.
Of the amount to be raised, $20.1 million is expected to be used for the acquisition of oil and gas assets, $5.8 million will be used for working capital purposes and $1.4 will be used to cover expenses of the issue.
The minimum subscription to the issue is $24.57 million (representing 58.5 million shares) and the issue is expected to increase the company's share capital and reserves by approximately $25.9 million.
In March, the company announced it had executed a purchase and sale agreement to acquire production assets in Wyoming for US$36.3 million ($A 47.7 million).
The production assets located within the Green River Basin have been a major focus of Samson since it acquired Kestrel Energy Inc., which had an extensive acreage holding in this region.
The assets acquired include a 21 per cent equity in the 240 acre crestal portion of the Jonah Field and 16.6 per cent of a gross acreage of 12,500 acres in the Look Out Wash Field. Both fields are in production and net gas production is currently 3.2 million cubic feet equivalent per day, expected to rise to 4.2 mmcfed per day for calender 2006.
Applications must be for a minimum of 10,000 shares and after that in multiples of 2,000 shares.
The issue is not underwritten.
No securities will be allotted or issued on the basis of the prospectus after 21 June 2007.
At 1210 WST, shares in the company were down 1 cent to 39 cents.
