Elixir Petroleum (ASX: EXR) is set for a funding boost to progress the Moselle Permit in France, with the company to raise $1.85 million from a fully-underwritten pro-rata, non-renounceable entitlements issue.
The issue will be priced at $0.012 per share for the issue of around 154 million shares based on five for every nine shares held, and is priced at a 14.3% discount to the market.
Elixir’s largest shareholder, New Standard Energy (ASX:NSE), has agreed to fully subscribe for its pro rata entitlements under the offer. In addition, NSE has agreed to priority sub-underwriting the offer. NSE currently owns 13.7% of Elixir.
The new funds will be allocated to a large exploration permit in the East Paris Basin onshore North-eastern France, with the company targeting oil and gas in Europe, including unconventional hydrocarbon resources.
Last month the company was encouraged received an independent mean unrisked prospective recoverable resource estimate of 861 billion cubic feet of conventional gas for its Moselle Permit.
RPS Energy Services based this estimate on the assumption that Elixir finds hydrocarbons in all sequences at the Nancy East, Bullseye and West Chaumont prospects.
Taking just one success at each prospect, RPS estimated a mean unrisked prospective recoverable resource of 157Bcf with an 80% geological probability of success.
Should oil be found in the Lower Triassic of in both the Bullseye and West Chaumont prospects, prospective recoverable oil resources could be 76 million barrels.
A number of conventional prospects additional to those above have also been identified within the Moselle Permit but were not included within the scope of work.
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