- XCD Energy has received commitments to raise $2 million for its Alaskan oil project and begin a farm-out campaign
- The placement will be undertaken in two phases however, XCD will seek shareholder approval before phase 2 can begin
- Once the placement is completed the company will have 700 million shares on issue and $3.2 million in cash
- XCD’s share price is remaining steady with shares priced at 1 cent apiece
XCD Energy has received commitments to raise $2 million for its Alaskan oil project and begin a farm-out campaign.
This placement will consist of two phases with phase 1 to raise approximately $500,000, before costs, through the issue of 48 million shares at $0.01 per share and 24 million free attaching options.
Phase 2 will seek to raise approximately $1.5 million, before costs, through the issue of 152 million shares also priced at $0.01 per share and 76 million free attaching options.
However, XCD will seek shareholder approval to begin phase 2 placement on or around November 29.
The free attaching options, for both phases, will be issued on the ratio of one option for every two full paid shares subscribed for and will be exercisable at $0.02 per option.
The placement was jointly managed by Nascent Capital Partners and Originate Capital with fees payable of six per cent of the amount raised.
In addition to the placement, XCD has agreed, subject to shareholder approval, to issue 10 million shares for marketing services to the value of $100,000 in cash fees.
These marketing services will be available to XCD over the next 12 months on a call-off basis when required.
Once the placement is completed XCD expects to have approximately 700 million shares on issue and approximately $3.2 million in cash.
The money raised will be used to advance Project Peregrine and begin a farm-out campaign for the area.
“It is pleasing to get the continued support of existing shareholders as well as welcome new shareholders into this capital raise that will provide the company with the funding to pursue its near-term objectives,” Managing Director Dougal Ferguson said.
“These include launching a farm-out campaign late 2019 as well as advancing a low-cost drilling opportunity at Project Peregrine that, if successful, could result in the timeframe to drilling being significantly reduced,” he added.
Project Peregrine covers an area of around 150,000 acres and the leases have seen a seven to 10 year exploration period.
Directly south of Project Peregrine lies the Umiat oil accumulation which is estimated to have more than one billion barrels of oil in place by the United States Geological Survey (USGS).
XCD’s share price is currently steady with shares trading for 1 cent apiece in a $4.987 million market cap.