US Oil & Gas PLC (PRIVATE:USOP), the oil and gas exploration company with assets in Nevada, said it has raised gross proceeds of around $102,216 from a share placing with private investors.
The company said it placed 245,669 new ordinary shares of .0001 Euro each at a price of 32p per share including a share premium of 0.3399 Euro on each placing share.
US Oil & Gas said the proceeds of the placing will be used to provide the group with additional working capital, including the funding of drilling operations.
Since no commissions are payable, the net proceeds to be received by the company are circa $102,216. The 245,669 Placing Shares will shortly be issued through CREST.
Following the placing, the issued share capital of the company will increase to 66,226,203 ordinary shares of .0001 Euro each.
At the end of October, US Oil & Gas said it believes well drilling in the fourth quarter of 2020 remains a reasonable expectation, and it has finalised plans for the programme as it awaits regulatory approval.
The company plans to drill the Eblana-9 well, at Railroad Valley in Nevada, as a straight hole with no deviation, down to a target depth of 5,300 feet. It also aims to test three potential producer zones of interest.
Once drilled, it is the company’s intention to carry out a drill stem test to determine if the well is likely to produce at commercial rates.