1st Jul 2014 12:04
LONDON (Alliance News) - Caza Oil & Gas Inc Tuesday said it has raised roughly USD10.0 million through a placing of 32.7 million shares at a price of 18 pence per share.
The US-focused oil and gas exploration and development company said the placing price is at a discount of roughly 4.6% to its closing price of 18.875 pence on June 30 and the placing shares represent roughly 13.8% of its total share capital.
Caza shares were down 1.6% to 18.58 pence on Tuesday.
The company said it plans to use the cash from the conditional placing to start an expanded drill programme at the Bone Spring play in New Mexico and for its general corporate purposes.
Caza said it also plans to take part in lease sales in New Mexico in order to acquire new acreage to grow its reserves and production, and the company has already identified asset acquisition opportunities which have the potential to drill the Bone Spring play.
The company currently has 300 drilling locations and 23 producing wells in the Bone Spring play, often using fracking to get more out of its assets.
By Tom McIvor; [email protected]; @TomMcIvor1
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