Elixir Petroleum (ASX: EXR) has successfully raised $1.85 million from its fully underwritten entitlement issue to fund exploration at its wholly-owned Moselle oil and gas permit in France.
Notably, its largest shareholder New Standard Energy (ASX: NSE), which provided cornerstone support for the underwriting, purchased 83,655,036 shares priced at $0.012 each for a total cost of $1 million.
This increased NSE’s stake in Elixir to 28.2% from 13.7%, highlighting its support for the company’s exploration and technical work on the Moselle Permit.
Moselle is largest single exploration block in onshore France, covering 5,360 square kilometres in the Paris Basin. It has strong prospectivity for conventional, tight gas and shale gas exploration targets.
Elixir’s technical studies estimated three targeted conventional prospects in the Moselle Project contained mean unrisked prospective recoverable resources of 861 billion cubic feet if entirely gas filled, or 805Bcf of gas and 76 million barrels of oil if the Lower Triassic ‘Paris Basin’ reservoirs (targeted in the Bullseye and West Chaumont prospects) are oil filled.
Proceeds from the raising will also be used to undertake technical studies in relation to any additional acreage the company secures and potential costs associated with the repositioning or the eventual abandonment of its U.S. assets.
With funds in place to progress exploration of its Moselle Permit, Elixir prospects look attractive given that its largest shareholder NSE clearly sees value in its prospects and has invested additional funds accordingly.
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