Prominence Energy (ASX:PRM) to raise $800K for Bowsprit

• Prominence Energy (PRM) has agreed to undertake a share placement to raise $800,000 before costs
• More than 114.2 million shares will now be issued to new and existing sophisticated investors at 0.7 cents
• Prominence Energy will use the funds to advance the Bowsprit farm-out project and fund reviews of new assets
• Bowsprit lies 70 kilometres southeast of New Orleans in Louisiana and covers an area of 4.67 square kilometres
• Prominence Energy is now planning to drill a vertical pilot hole at Bowsprit to evaluate the prospective reservoirs
• On market close, shares in Prominence Energy are down 11.1 per cent and trading at 0.8 cents

Prominence Energy (PRM) has agreed to undertake a share placement to raise $800,000 before costs.

The company entered a trading halt on Wednesday but did not disclose how much it intended to raise or what the funds would be used for.

All up, 114,285,714 shares will be issued to new and existing sophisticated investors at 0.7 cents.

Prominence Energy will use the funds to advance the Bowsprit farm-out project, fund reviews of new assets, and for working capital.

In 2017, Prominence Energy purchased the Bowsprit Oil Project in Louisiana with Pinnacle Exploration.

Both companies initially owned 50 per cent, however, in July 2019, Prominence Energy agreed to acquire Pinnacles’ interest to bring its total holding to 100 per cent.

The project covers 1154 acres, around 4.67 square kilometres, and lies 70 kilometres southeast of New Orleans.

Prominence Energy is now planning to drill a vertical pilot hole at Bowsprit to evaluate the prospective reservoirs.

On market close, shares in Prominence Energy are down 11.1 per cent and trading at 0.8 cents in a $4.415 million market cap.