AusTex Oil Limited (ASX:AOK) Announce US$6.0 Million Private Placement with US Institutions
Sydney, June 17, 2011 AEST (ABN Newswire) - AusTex Oil Limited (
ASX:AOK) is pleased to announce that it has successfully completed a private placement of US$6.0m, subject to shareholder approval at an Extraordinary General Meeting of shareholders, to fund the continued development of its producing oil and gas assets in Oklahoma and Kansas, including its significant acreage position in the Mississippi Lime play.
An agreement for the private placement to a group of New York based sophisticated and professional investors was finalised on Thursday 16 June. The private placement was lead by specialist oil and gas investor Iroquois Capital Opportunity (ICO) Fund, LP.
Subject to Shareholder Approval, AOK has agreed to issue circa 60 million fully paid ordinary shares at AUD$0.10 each along with circa 30 million free options with an exercise price of AUD$0.15 each with a 3 year expiry date from issue.
In the interim, US$2.2million is to be funded to the Company by way of Promissory Notes that compulsorily converts to fully paid ordinary shares and options upon shareholder approval subject to the ASX Listing Rules. The additional US$3.8 million is to be funded upon shareholder approval of the placement.
A general meeting of shareholders is to be held as soon as possible to seek approval of the placement.
Additional Technical Expertise
AOK is pleased to announce the following addtions to the US based technical team:-
The Company has appointed an additional Senior Production Engineer, a petroleum engineer who previously held positions at Petrohawk (NYSE:HK), Chevron-Texaco and Samson Resources. He commenced duties in the Tulsa office in April. A new Senior Geologist was appointed in May. He previously held positions with Newfield Exploration (NYSE:NFX) and Samson Resources and is a Professional Geoscientist with a Master in Geology with 15 years of experience, both offshore and onshore.
Plaster and Wald, Consulting Engineers, based out of Tulsa have been retained to design drilling and completion of horizontal wells.
The Company has also signed a one year mandate with Iromad LLC, a specialised oil and gas consultancy to provide the Company with ongoing technical and operational expertise. Iromad has been working with AOK to optimise production from existing wells and infrastructure as well as providing input into the upcoming work program.
Mr Daniel Lanskey, Managing Director of AOK commented:
"This is another strategic milestone for the Company. Our goal was to attract US based investors into AusTex in the lead up to the Company's proposed North American listing. We are very pleased to have the support of Iroquois Capital Opportunity Fund. Their involvement validates the potential of the Company and the underlying value of our portfolio of oil and gas assets. We are very excited about the team of people now in place and this injection of capital will expedite the development of our properties."
Speaking from New York, Managing Partner of ICO Fund, Mr Scot Cohen stated:
"We believe the Mississippi Lime play is one of the most attractive new horizontal oil plays in North America and we are excited about our entry into the play through our investment in AusTex. The company has established a strong initial land position in what can be considered to be the heart of the play in Kay and Noble counties."
ABOUT IROQUOIS CAPITAL OPPORTUNITY FUND, L.P
Iroquois Capital Opportunity Fund, L.P. ("ICO Fund") is a private equity fund focused on investments in the oil and gas industry. ICO Fund invests in low risk oil and gas assets and in technologies that increase production, improve recovery factor and reduce costs to apply these technologies to change the economics of the targeted assets. The fund is managed by a seasoned team that includes former senior national oil company executives, former senior oil service executives, oilfield technology venture capitalists and financiers experienced at structuring investments in the oil and gas industry.
ABOUT PLASTER AND WALD CONSULTING CORP.
Plaster and Wald Consulting Corp., is an Oklahoma based Company providing technical expertise in the implementation of drilling and completion programs. The Company's vision is to continue our Company's growth and maintain the highest level of service to meet the ongoing demand and challenges of the Oil & Gas Industry through education and teamwork with our most valuable resources, "Our Personnel!"
ABOUT IROMAD LLC
Iromad was formed through the convergence of veteran oil and gas professionals, innovative technologists, leading entrepreneurs, and experienced investment professionals. Iromad's vision is to facilitate the delivery of technologies for the enhanced development of mature oil and gas assets and unconventional hydrocarbons, providing cutting-edge solutions to issues faced by national oil companies and independent petroleum producers. Iromad focuses on solutions that will increase recoverable reserves, enhance production, and reduce lifting costs. This demands a long-term perspective, breadth and depth of expertise, and solid project management in order to outlast the cyclic nature of oil and gas commodity markets.
About Australian Oil Company Limited
Australian Oil Company Limited (ASX:AOK) (OTCMKTS:SGCSF) is an Australian-based energy company focused on under-explored, recently over-looked, world class oil and gas opportunities near under-supplied markets. The Company is currently focussed on conventional oil and gas exploration and production in the Sacramento Basin in California. Australian Oil has a portfolio of natural gas and oil producing wells in addition to prospects and discoveries at various exploration and appraisal stages. AOK is in the process of evaluating the acquisition of oil and gas producing and exploration assets to enhance the Company's strategic needs and deliver shareholder value.
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