- Xstate Resources (XST) will soon announce the details of a capital raise venture
- The oil and gas company requested a trading halt from the ASX today, pending release of the raise announcement
- Xstate has previously been working to secure a production asset
- The company already has stakes in the Borba prospect and Alvares Project in California's Sacramento Basin
- However, in its March quarterly report, the company revealed its work had been delayed by the effects of COVID-19
- The same report also revealed the company had $145,000 in cash at the end of the March 2020 quarter
- Shares in Xstate were last traded for 0.2 cents each
Oil and gas company Xstate (XST) is set to announce a new capital raise venture.
The company requested a trading halt from the ASX today, pending the announcement's release.
Details have not yet been disclosed but are expected in the coming days.
The capital raise comes after the company revealed a delay in activities due to COVID-19 in its March quarterly report.
Now, Xstate is working to secure a producing asset (or assets).
Currently, the company is focused on the Sacremento Basin in California, where it has stakes in two projects.
These include a 24 per cent stake in the Borba prospect, where drilling is set to begin once coronavirus restrictions are lifted.
It also has a 25 per cent stake in the Alvares Project, also located in the Sacramento Basin.
Xstate and the operator, Sacgasco (SGC), are planning to re-enter an original well-bore there and conduct tests.
However, the operator is yet to announce when this will happen.
Meanwhile, the same report also revealed the company had $145,000 in cash at the end of the March 2020 quarter.
Shares in Xstate remain in a trading halt, with shares last trading for 0.2 cents per share on July 6.