- Oil and gas explorer Northwest Energy is looking to raise up to $3.75 million from shareholder to fund one of its wells in the Perth Basin
- The EP 368 well is held in a joint venture with Energy Resource who has an 80 per cent interest, Norwest holds the remaining 20 per cent
- The company says it remains well funded to continue drilling and exploration at its holdings in the Perth Basin
- Norwest's share price is remaining flat today, currently trading for 0.4 cents each
Northwest Energy is looking to raise $3.25 million from shareholders to help fund a drilling campaign in the Perth Basin.
Drilling will take place at the company's EP 368 well in the first half of next year. Norwest has a 20 per cent interest in the well and Energy Resources holds the remaining 80 per cent.
Norwest's Managing Director, Iain Smith said: "I believe this is a great result at what is a very exciting time for Norwest Energy and Perth Basin explorers in general."
"The prospectivity of the basin has been hugely enhanced in recent years with discoveries in each of the three exploration wells," Iain added.
The company detailed in its release to the market today, that its capital raising, current cash in the bank and the $630,000 it is receiving from the sale of the L14 production license leaves it in a favourable financial position moving forward.
With the secured funds, the company said it will continue its exploration and drilling initiatives at the EP 368 well.
"The EP 368 Joint Venture will shortly select the location for what could be a truly transformational exploration well for Norwest," Iain said.
Sophisticated and institutional investors will take part in the raise. Additionally, the company is looking to raise a further $500,000 through a share purchase plan.
At today's market close, Norwest's share price remained flat. Shares in the company are currently trading for 0.4 cents each.