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- Red Sky Energy (ROG) will raise an additional $7 million in funding for the development and expansion of the Killanoola Oil Project
- ROG plans to raise the cash via a $3 million share placement and a $4 million share purchase plan (SPP), with new shares worth 0.8 cents each
- The company says it has already received firm commitments for the placement, while the SPP will open to shareholders today
- All money raised will go towards expanded seismic acquisition and additional drilling at Killanoola, as well as new potential opportunities
- After coming out of a trading halt, shares are down five per cent to 1 cent apiece at noon AEST
Red Sky Energy (ROG) will raise an additional $7 million in funding for the development and expansion of the Killanoola Oil Project in South Australia.
The Australian oil and gas explorer plans to raise the cash via a $3 million share placement and a $4 million share purchase plan (SPP).
Both offer new shares at an issue price at 0.8 cents each, a 20 per cent discount to ROG’s last traded share price, with up to 875 million units to be issued.
Red Sky said it had already received firm commitments to raise $3 million through the placement, while the SPP opens today.
Shareholders have until August 31 to take part in the SPP, with the results due to be announced on September 2.
Commenting on the raise, Red Sky Managing Director Andrew Knox said he was pleased with the support so far.
“We are very pleased with the substantial interest from strategic investors for the placement,” Mr Knox said.
“The additional funding will allow us to further expand and develop Killanoola.
“We welcome further shareholder support in the SPP as we embark on this valuable project.”
He said the money raised by ROG would go towards expanded seismic acquisition and additional drilling at Killanoola, as well as assessing for new opportunities.
After coming out of a trading halt, shares were down five per cent to 1 cent apiece at noon AEST.
