Sydney, Aug 22, 2012 (ABN Newswire) - ADX Energy Limited (ASX:ADX) is pleased to announce the completion of a placement to sophisticated investors eligible under s.708 of the Corporations Act (2001) of 47,058,825 new shares at 1.7 cents per share to raise $800,000.
The funds raised in conjunction with the Company's current cash resources will primarily be used to fund the Company's working capital requirements. ADX planned exploration operations in Romania are expected to be funded via the existing farm out to RAG announced on 23 May 2012. The Company's planned appraisal of the Dougga discovery and the drilling of compelling 3D defined near field exploration prospects in the Sicily Channel, is expected to be funded via future farm outs.
The Placement is unconditional and will settle on Monday 27 August. After settlement and issue of new shares the Company will have 485,367,175 shares on issue. Patersons Securities Limited ("Patersons") was the Lead Manager for the placement.
The company's strategy is two pronged; grow the European and North African oil and gas business in order to expose shareholders to the lucrative European energy market and to promote it's existing Australian energy, gold and base metal portfolio to capitalise on the current high commodity price environment.
ADX was incorporated in 1987 in order to explore for gold and base metals in Western Australia. The company has recently diversified from its initial minerals focus to include oil and gas exploration. To that effect ADX farmed in PEL 182 into the South Australian portion of the Cooper Basin in 2005.
ADX appointed Wolfgang Zimmer, an oil and gas industry professional with over 27 years experience, as Managing Director in late 2007 to grow the company’s oil and gas business. Subsequent director and staff appointments and the establishment of a European office have boosted the depth of oil and gas experience in the company and allowed the company to expand its oil and gas activities.
Currently ADX operates permits onshore and offshore Tunisia, offshore Italy and onshore Australia and holds an interest in a non operated block in onshore Romania.
ADX is also a participant and operator of a number of AMI's (Area/s of Mutual Interest) that enable it and its partners to efficiently act upon business opportunities.
ASX:ADX) is pleased to announce the completion of a placement to sophisticated investors eligible under s.708 of the Corporations Act (2001) of 47,058,825 new shares at 1.7 cents per share to raise $800,000.
ADX Energy Limited
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