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Elk Petroleum Raises $750,000 Through Share Purchase Plan

Enhanced oil recovery play Elk Petroleum (ASX: ELK) has raised $750,000 through a Share Purchase Plan, which is part of a broader A$5 million capital raising.

The Share Purchase Plan comprised $610,500 from shareholders, with an additional $139,500 to be provided under the Underwriting Agreement with DJ Carmichael Pty Ltd.

$5 million capital raising

Elk announced last month that firm commitments had been received for a A$4.25 million placement to Institutional and Sophisticated Investors at $0.25.

This will be completed in two tranches with the first of about 11.74 million shares priced at A$0.25 each issued under Elk's 15% issuing capacity and the remaining 5.26 million shares issued to Elk's major shareholder following the Annual General Meeting in late November.

Elk will also issue one free option exercisable at A$0.35 on or before 30 November 2013 for every two shares allocated. These will also be issue during the AGM.

The funds will be applied to furthering the Ash Creek development, along with pursuing new venture opportunities complementing Elk's growth objectives.

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