- Stonehorse Energy (SHE) has successfully tapped sophisticated investors for $5 million to help fund the purchase of a U.S.-based oil and gas well
- The company plans to buy a working interest in the proposed Jewell Well, which is a horizontal well yet to be drilled in Carter Country, Oklahoma
- Once built up, the well will sit among 4000 peer wells in Oklahoma’s Anadarko Basin — some of which have been producing oil since the 1950s
- To raise the $5 million, Stonehorse issued 250 million shares at 2 cents each
- Investors were also given one free option for every two shares bought, exercisable at 4 cents within two years of issue
- Shareholders seem supportive of Stonehorse’s plans for the new well, with company shares closing almost 14 per cent higher at 2.5 cents each
Stonehorse Energy (SHE) has successfully tapped sophisticated investors for $5 million to help fund the purchase of a U.S.-based oil and gas well.
The company plans to buy a working interest in the proposed Jewell Well, which is a horizontal well yet to be drilled in Carter County, Oklahoma.
Stonehorse placed 250 million shares at 2 cents each to raise the funds, with the issue price representing a neat 17 per cent discount to the company’s 10-day volume-weighted average price.
The sophisticated investors who took part in the raise will be given one free option for every two shares bought. All options can be exercised at 4 cents each within two years of their issue.
The Jewell Well
Sitting within Carter Country’s Anadarko Basin, the Jewel Well will sit among over 4000 other horizontal wells, some of which have been producing oil since the 1950s.
Production from the Anadarko Basin to date has hit almost 50 billion barrels of oil equivalent, and Stonehorese plans to build the Jewel Well up to produce oil alongside these peer wells.
The company said work is expected to begin on its new well immediately, with first plans including building the location up and engaging some drilling contractors.
Stonehorse plans to update investors throughout the drilling and completion phase through to initial production and first sales, though at this stage no further plans have been revealed.
Nevertheless, investors seem supportive of the buy, with Stonehorse shares tacking on 13.64 per cent to close at 2.5 cents each this afternoon. The company has a $10 million market cap.