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  • Australis Oil and Gas (ATS) has entered a trading halt ahead of a capital raise
  • The oil and gas explorer owns the majority of the Tuscaloosa Marine Shale (TMS), which is one of the last emerging onshore oil shale basins in the U.S.
  • It isn't clear how much Australis will raise or what it will use the money for, but a plan was recently outlined to secure a partner for the TMS operation
  • Still, the market will only have to wait until Monday, March 1, at the latest to find out
  • ATS last traded at 5.7 cents on Wednesday, February 24

Australis Oil and Gas (ATS) has entered a trading halt ahead of a capital raise.

Australis is an oil and gas exploration company that was formed by the executives and founders of Aurora Oil and Gas.

The company owns the majority of the Tuscaloosa Marine Shale (TMS) which is one of the last emerging onshore oil shale basins in U.S.

As of December 31, 2020, Australia holds 107,500 net acres in the TMS core — making it the largest producer and acreage holder in that region.

At this stage, it isn't clear how much the energy stock is planning to raise or what it will use the money for.

However, in its December 2020 quarterly report, Australis outlined its plan to secure potential partners to contribute a program of acreage and asset maintenance as well as development drilling.

Overall, the company hopes to find a partner to participate in creating asset value for its TMS operation.

In terms of its cash position, Australis had US$4.7 million (roughly A$5.9 million) in cash and a total credit facility debt of US$20 million (roughly A$25.1 million) after repaying about US$3 million (roughly A$3.7 million).

The company expects the trading halt to be lifted by no later than Monday, March 1.

ATS last traded at 5.7 cents on Wednesday, February 24.

ATS by the numbers
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