MELBOURNE, Australia,
Feb. 21, 2012 /PRNewswire/ -- Austin Exploration Limited
(ASX: AKK)(OTCQX: AUNXY) is pleased to advise that it has
resolved to raise up to approximately $20
million through a placement of up to approximately 690
million fully paid ordinary shares ("Shares") to domestic
and international institutional and sophisticated investors
("Placement"). The Placement is being undertaken at an issue
price of 2.9 cents per Share,
together with a 1 for 2 free attaching listed option, exercisable
at $0.055 cents, expiring on
6 July 2013 (AKKOA). Hartleys Limited
is Broker to the Offer.
In addition, Austin will
undertake a shareholder share purchase plan ("SPP") which
will be capped at $5 million,
allowing Austin shareholders
registered on Monday 20 February 2012
to subscribe for Shares up to the amount of $15,000 each. The issue price of Shares under the
SPP will also be 2.9 cents per
Share.
The Placement, which was strongly oversubscribed, is a
considerable milestone for the Company, which together with the
appointment of Mr Richard Cottee as
the new Chairman of Austin on the
22nd March 2012 provides a strong financial platform to expand
activities across the Company's Eagle Ford and Niobrara
acreage.
The Company intends to use funds raised pursuant to the
Placement and SPP to undertake the following activities:
- Drill and complete two vertical wells on the Company's Eagle
Ford Shale Project, and complete the recently drilled well on the
Eagle Ford Shale Project;
- Drill and complete a single horizontal well in the most
prospective of the first three vertical wells drilled on the
Company's Eagle Ford Shale Project;
- Drill and complete two horizontal wells on the Company's
Niobrara Shale Project; and
- Drill and complete one well at Austin's Mississippi Wilcox project.
Commenting on the success of the Placement, Austin's CEO Mr Guy
Goudy said, "We are delighted by the strong support received
for the Placement, which was significantly oversubscribed, and
strengthens Austin's Share
register. We see this as an important step in the transformation of
Austin into a significant onshore
USA producer of oil and gas and
one of the ASX's premier exposures to the highly successful
USA shale sector. By their
subscription Investors have given a resounding endorsement of the
decision to appoint Mr Cottee as Chairman thereby accessing his
exceptional experience in growing companies in the unconventional
onshore oil and gas sector."
Dr Mark Hart, Austin's President and Executive Director,
commented, "The tremendous success of this capital raising will
fund the Company through a multi well program in 2012, and is a
testament to the quality of the assets secured by the Company in
2011. Austin holds a highly
prospective portfolio of oil and gas assets onshore USA and with the success of this placement the
Company now has the funds to properly evaluate and progress
development of these assets."
About Austin Exploration Limited
Austin Exploration Limited is an Oil and Gas Company with
assets in Australia and
the United States. Austin has strategically shifted its core
focus towards non–conventional shale exploration in the United
Sates. The Company has now established a major presence in two of
America's most prolific oil and gas basins. Austin controls more than 11,000 acres in
Colorado in the Niobrara Shale and
over 5,000 acres in Texas in the
Eagle Ford Shale. Austin has producing wells in Texas, Mississippi and Kentucky. Austin also has a highly prospective Oil and
Gas License, PEL 105, in the Cooper Basin of South Australia. The company's wholly owned US
Subsidiary, Aus-Tex Exploration Inc, turned cash flow positive in
January 2011. Austin Exploration's
common stock is listed on the Australian Exchange (ASX) and trades
under the symbol "AKK". Austin Exploration's ADR is listed in
the United States on the OTC
market (OTCQX) and trades under the symbol "AUNXY", where each ADR
represents 100 ordinary shares of common stock.
SOURCE Austin Exploration Limited