Red Fork fast-tracking Oklahoma

02 December 2007 | 03:27 Code : 16079 Geoscience events
Australian based oil & gas company, Red Fork Energy Ltd plans to fast track....
Red Fork fast-tracking Oklahoma

  Australian based oil & gas company, Red Fork Energy Ltd plans to fast track production at its US, Oklahoma-based oil & gas assets following a A$10 million placement to international and domestic institutional and sophisticated investor clients of Australian broker Hartleys Ltd.Under the terms of the placement, Red Fork has resolved to place up to 18.5 million ordinary shares at an issue price of A55c per share, to raise up to A$10,175,000.The placement will be made in two tranches, with 7.9 million shares issued in accordance with ASX Listing Rule 7.1 that gives the company capacity to offer a 15% placement, and the balance of 10.6 million shares issued subject to shareholder approval at a general meeting of shareholders scheduled to be held on or around December 28, 2007.This placement will see Red Fork fully funded to pursue the ongoing development of its rapidly growing coal bed methane, unconventional gas, and conventional oil and gas holdings in Oklahoma.The company said the funds will be spent on an aggressive drilling program, expansion of pipeline infrastructure as well as additional leasing in key strategic areas. David Prentice, Managing Director of Red Fork said: “This Placement has not only provided the funding for our aggressive development program in Oklahoma, but also introduced to our register a number of committed Australian and international institutional and sophisticated investors – individuals and groups who we feel will become important partners as the company continues its development.”Red Fork currently has 34,000 acres leased in Oklahoma (targeting 50,000 acres from its on-going leasing campaign) with long lease terms and high net revenue interests.The company has established a very strong technical team based in its office in Tulsa (with access to experienced drilling contractors and service companies with demonstrated successful track-records) and has built and acquired significant pipeline, compression and gathering infrastructure

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