• $2.86m Placement underpins funding for the Pierre drilling program • Vote of confidence in Austin growing production portfolio
The Board of Austin Exploration Limited (“Austin” or the “Company”) advises that it has completed a placement of $2.86 million through the issue of 260 million new shares at 1.1 cents per share. The placement to sophisticated investors was completed at a 15% discount to Austin’s last closing price on the on the ASX. DJ Carmichael Pty Ltd acted as Lead Manager and book runner to the Placement. The Placement funds will provide Austin with additional working capital to allow it to start the Pierre shale drilling program at the Company’s Niobrara Pathfinder project. The Company is proposing an additional two shallow wells which, if successful, will result in the early commencement of oil sales and add significantly to cash flow. Chairman Richard Cottee said the drilling in the Pierre is highly attractive to Austin because it is expected to bring forward a strong revenue stream in return for a modest investment. “The program aims to prove-up the prime Niobrara property so as to facilitate further development opportunities including possibly attracting a high calibre farm-out partner for our 11,560 acre flagship Pathfinder project on terms most favorable to Austin shareholders”, Mr Cottee said. "We appreciate the support shown by the investment community for the company and our management team. We have worked hard for the last three years to get us to this point and 2014 is shaping up to be a very exciting year on the back of an ongoing drilling campaign." said Guy Goudy, COO of Austin Exploration and President of t
AKK Price at posting:
1.3¢ Sentiment: None Disclosure: Not Held
