ASX-listed, US-onshore focused Elk Petroleum Ltd has had another significant boost to its coffers after it was successful in obtaining interest in the remaining shortfall shares under its June non-renounceable pro-rata entitlement offer.
Elk will receive an additional $11.4 million for issuing approximately 148.5 million shortfall shares priced at $0.075 per share to sophisticated investors and institutional investors new to the Elk register.
That will bring the amount of new capital El has raised through the entitlement offer and shortfall to $30,755,544.
The funds will be used to:
- Fully fund Elk’s Grieve CO2 Enhanced Oil Recovery joint venture project in Casper, Wyoming;
- For development of Elk’s existing and new oil redevelopment projects, including its 100 per cent owned Singleton South oil redevelopment project in Nebraska; and
- For corporate working capital.
“The successful placement of all remaining shortfall shares under the entitlement offer demonstrates strong institutional investor confidence in Elk resulting from the successful restructuring and funding of the Grieve CO2 Enhanced Oil Recovery project in Wyoming,” the company’s managing director, Brad Lingo, said.
“Elk is now fully funded and well placed to create shareholder value from the Grieve Project and its pipeline of other projects and initiatives.”
Taylor Collison Limited acted as partial underwriter of the entitlement offer and lead manager to the placement of shortfall shares.