U.S. Oil & Gas Plc (USOIL) has raised the equivalent of US$527,539 in new capital through a share placing.
Some 1.36mln new shares were sold at a price of 30p per share.
Last month, US Oil & Gas noted that it remains intent on seeking a stock exchange listing but said work on the Eblana-3 well remains the priority.
In the company’s annual general meeting statement, Brian McDonnell, the company’s chairman and chief executive, reported that the oil that flowed to the surface from the recently drilled Eblana-3 well in Nevada tested at API 34.5.
This oil is believed to come from zone 5 and possibly zone 4. Heavier oil was encountered from zone 3. The zone 5 estimated pay is 258 feet.
As previously announced, subject to regulatory permissions and funding, the well will be subject to a hydraulic fracturing (fracking) operation of short duration, using limited water and no contentious chemicals.
While the company waits for regulatory permissions to come through, technical specifications are currently being drawn up in consultations with reservoir specialists.
The fracking operation will require additional, modest funding of around US$300,000, McDonnell told shareholders.