- Real Energy (RLE) has completed an $800,000 financing and launched a share purchase plan ahead of drilling work at its Venus Project in Queensland
- The company issued 40 million shares at a price of two cents each, which also included half an option for each share purchased
- A share purchase plan has also now been launched, which seeks to raise an additional $200,000
- Drilling has been planned at the Venus-1 coal seam gas well and is expected to begin in October this year
- Real Energy closed 8.33 per cent in the red for 2.2 cents per share
Real Energy (RLE) has completed an $800,000 financing and launched a share purchase plan ahead of drilling work at its Venus Project in Queensland.
Under the terms of the financing, the oil and gas company issued a total of 40 million shares at a price of $0.02 each. Each share also includes half an option, with each whole option exercisable at a price of $0.04 per share until September 30, 2022.
In addition to the financing, Real Energy has launched a share purchase plan, allowing eligible shareholders to purchase up to $30,000 worth of fully paid ordinary shares.
These new shares will be issued at either two cents each or at a 10 per cent discount to the volume weighted average price over the 10 days prior to closing, whichever is cheaper.
Like the financing, the shares will also include half of an option, with each whole option exercisable at a price of $0.04 per share until September 30, 2022.
Overall, Real Energy expects to raise $200,000 under the share purchase plan, which is expected to close on October 8.
The proceeds, along with those from the completed financing, will go towards a drilling program at Real Energy's Venus-1 coal seam gas well, which sits within the 154-square-kilometre Venus Project.
Held under a joint venture with Strata-X Energy, with each company owning 50 per cent, the project is located within the Walloon coal seam gas fairway of the Surat Basin, which is widely considered to be Australia's most prolific onshore petroleum producing region.
Drilling at the Venus-1 well is expected to begin in October this year, and has been designed to prove initial gas breakout, along with increasing gas flows over a controlled drawdown period.
The results of this testing will be used to either expand the pilot program or, if commercial flow rates are achieved, progress the project towards securing sales agreements and beginning field development.
Real Energy closed 8.33 per cent in the red for 2.2 cents per share.