- Oil and gas explorer Xstate Resources (XST) has entered the week in a trading halt ahead of a capital raise and an acquisition
- The company hasn’t given any specific details on how much it is aiming to raise but the funds will likely go towards drilling efforts in the Sacramento Basin
- Earlier this month, the company announced the construction of the Borba drilling pad has been completed
- The Borba 1-7 well will now be drilled to test multiple 3D seismic anomalies
- On the market, Xstate last traded for 0.4 cents per share on Friday, 13 November
Xstate Resources (XST) has entered the week in a trading halt as it plans to raise capital and announce an acquisition.
Under the halt, company shares will be paused until Wednesday, November 16, or when more details about the raise will be released to the market.
Xstate Resources is an Australian-based company that is exploring the oil and gas market in the United States. The company has a number of gas assets in the Sacramento Basin in California – one of which is shared with fellow ASX-lister, Sacgasco (SGC).
The oil and gas company has not given any details about how much it is aiming to raise, however the funds will likely go towards drilling efforts for an upcoming well in the Sacramento Basin.
Earlier this month, Xstate announced the construction of the Borba drilling pad had been completed. The pad measures around 300 feet and sits 16 inches above cornfield level.
The Borba 1-7 well will soon be drilled to test multiple 3D seismic anomalies. The well is expected to be completed between 25 and 35 days, with operations still expected to commence this year.
Xstate has a 24 per cent interest in the Borba 1-7 well, with the remaining 76 per cent interest owned by Sacgasco who is also the operator.
Interestingly enough, Sacgasco is also raising capital and announcing an acquisition.
Over the September quarter, Xstate spent $296,000 on operating activities – most of which went towards exploration. At the end of the period, the company finished the quarter with $293,000 in the bank.
On the market, Xstate last traded for 0.4 cents per share on Friday, 13 November.