Kurdistan focussed oil junior Range Energy (CNSX:RGO) told investors it has arranged a private placing of new shares to raise C$3.5mln from investors.
Cash proceeds will be used to help fund the group’s participation in the development of the Khalakan field, in the Kurdistan region of northern Iraq, the company said.
The funding also provides working capital, it added.
Range Energy is selling 100mln units at a price of 3.5 cents each. A unit comprise one common share and one transferrable share warrant. Each warrant entitles the holder to buy one additional common share for a period of 5 years, at a price of 5 cents.
Earlier this month, Range revealed positive results from the Shewashan-2 well.
Shewashan-2 flowed high quality light oil at a rates of up to 4,400 barrels per day during testing, the company said, and it highlighted that having been completed the well is now ready for production.
Range Energy expects the Shewashan-2 well to contribute to the phase 1 production target for the field of 10,000 barrels of oil per day by the end of 2016.
First phase production will be processed through a 10,000-barrel-of-oil-per-day early production facility, with total storage capacity of 30,000 barrels.
The company has an indirect 24.95% interest in Gas Plus Khalakan Limited (GPK), which as the sole contractor of the Khalakan PSC production sharing contract has an 80% stake in the asset alongside the Kurdistan Regional Government (which retains a 20% carried stake).