- Oil and gas explorer Whitebark Energy (WBE) receives firm commitments to raise $1.1 million via a share placement
- The funds will be raised through the issue of more than 733 million new ordinary shares to sophisticated and professional investors at 0.15 cents
- Whitebark has also received commitments to raise $1.1 million under a convertible note to be converted into more than 733 million shares at the same price as the placement
- The company will use the $2.2 million to bring the Rex 4 well into production which is expected to produce around 155,000 barrels of oil and 1.3 billion cubic feet of gas
- Shares in Whitebark are steady on the market and are trading at 0.2 cents at 2:23 pm AEST
Oil and gas explorer Whitebark Energy (WBE) has received firm commitments to raise $1.1 million via a share placement.
The funds will be raised through the issue of up to 733,333,334 new ordinary shares to sophisticated and professional investors at 0.15 cents.
Whitebark has also received commitments to raise $1.1 million under a convertible note to be converted into 7333,333,333 ordinary fully paid shares at the same issue price as the placement of 0.15 cents. The convertible note will mature 12 months after issue.
The company will use the $2.2 million to bring the Rex 4 well in Alberta, Canada into production.
Rex 4 is expected to contribute 300 barrels of oil and 1400 million standard cubic feet (mscf) of gas per day.
Whitebark expects the well to produce approximately 155,000 barrels of oil and 1.3 billion cubic feet of gas.
“We will conservatively bring this well [Rex 4] online and in doing so maximise the potential of this well to be a long term producer and contributor to the company’s cash flow,” Interim CEO Dr Simon Brealey said.
“It is expected that this will enable the self-funding of the Rex-5 well in early-mid 2023, and Whitebark to move forward to address the additional 17 identified drilling locations at Wizard Lake.”
Shares in Whitebark were steady on the market and were trading at 0.2 cents at 2:23 pm AEST.