Red Fork raises A$50m for US drilling

10th August 2012 By: Esmarie Swanepoel - Creamer Media Senior Deputy Editor: Australasia

PERTH ( - ASX-listed oil and gas explorer Red Fork Energy on Friday said that it would raise some A$50-million through a share placement to accelerate a drilling programme at its Mississippi project.

The Oklahoma-based Red Fork would place some 74.63-million shares at an issue price of 67c a share to qualified and institutional and sophisticated investors. The explorer said that the issue price was an 8% discount to the last closing share price.

“The strong support for the placement follows continued favourable production and testing results,” said Red Fork MD David Prentice.

“This additional capital will allow us to seek to replicate these results across an increasing number of development areas as we ramp up our horizontal Mississippi drilling.”

The Mississippi play forms part of the company’s flagship Big River project, and Red Fork currently has nine horizontal wells across two development areas.