WA-BASED Titan Energy will expand its developmental drilling, reactivation and workover programs at its Allen Dome project in Texas after raising $1.32 million through an oversubscribed placement.
The company saw the oversubscribed placement from the issue of 62,491,166 ordinary shares, which were snapped up by strategic US and Australian investors from a combination of energy companies and professionals.
The company said it is continuing to investigate “strategic acquisitions” that are becoming available due to the slumping oil price.
Titan also announced the sale of its working interest in the Holcomb Ranch in Texas for US$522,000.
“Funds raised from the divestiture of the project will supplement costs for the ongoing workover program at Allen Dome and the planned 2015 developmental drilling program,” Titan said.
Managing director Paul Garner said the capital injection would boost its ability to develop “low cost and potentially strong cash flow-generating” activities at Allen Dome.
“[It will allow us to] move forward on the acquisition of other Gulf Coast projects where pricing is becoming very favourable for companies who have available cash,” Mr Garner said.
“The overwhelming investment support from our industry peers in this ‘challenging’ investing environment is a true testament to the belief in Titan’s future plans and directions.”
The company completed a second successful well recompletion in late December, this one on the JT Reese 2A well, first drilled in 1977.
The well, which had been producing six barrels of oil per day and 145 barrels of water per day, was most recently recompleted and swab tested at a rate of 87 barrels of oil and eight barrels of water per day over a 10 hour test interval.
The workover procedure involved cement squeezing and isolating the previously open zones, before shooting 12 feet of new perforations from 2,558 feet to 2,570 feet.