- Brookside Energy (BRK) raises $9 million to fast track developments in its SWISH Area of Interest in the Andarko Basin, Oklahoma
- The placement will see 300 million new shares issued at 3 cents each, to new and existing, sophisticated and professional investors
- BRK has embarked on a potential five-year, 20-plus well development drilling program across its three operated development areas
- Funds from the raise are set to increase the company’s position in the Rangers Drilling Spacing Unit and advance development of the Rangers Well
- Shares have been trading 10 per cent lower at 3.2 cents at 12:12 pm AEST
Brookside Energy (BRK) has raised $9 million through a placement to fast track developments in its SWISH Area of Interest in the Andarko Basin, Oklahoma.
The oversubscribed placement to sophisticated and professional investors is said to have received strong support from new and existing shareholders with 300 million shares up for grabs at 3 cents each.
Additionally, the shares will include one free attaching listed option exercisable at one cent per option on or before June 30, 2022, for every three shares subscribed and issued.
BRK said the funds would go towards increasing its position in the Rangers Drilling Spacing Unit (DSU) and to fund a majority working interest in the development of the Rangers Well.
The company has embarked on a potential five-year, 20-plus well development drilling program across its three operated development areas – Jewell, Flames and Rangers in the SWISH AOI – with the aim of developing an 11 million barrels of oil equivalent prospective resource.
The Rangers Well is the second well in the program and BRK is working towards bringing the timetable for its development forward.
The company said it was also moving quickly to secure key services, complete leasing and regulatory requirements, and constructing a drill pad on the Rangers DSU.
Shares were trading 8.6 per cent lower at 3.2 cents at 12:12 pm AEST.