Norwest Energy (ASX: NWE) has raised A$5 million through a share purchase plan to fund its Australian and UK exploration activities, a testament to CEO Peter Munachen's and the Company's forward strategy.
Eligible shareholders had taken up more than 62.6 million shares priced at A$0.05 each with the shortfall of almost 37.4 million shares placed with sophisticated investor clients of Hartleys and Patersons Securities.
With the company's shares trading at A$0.067 this morning, shareholders who took up the plan have made some immediate gains.
Hartleys had also placed a speculative buy recommendation on the company last week with a 12 month price target of A$0.10.
Fracture stimulation of the key Arrowsmith-2 unconventional well is expected to be carried out at the end of July though routine diagnostic and testing have returned encouraging results.
In particular, the diagnostic fracture injection test to assist in the determination of various reservoir and frac properties confirmed that conditions in the High Cliff Sandstone at the Arrowsmith-2 well are favourable for fraccing.
The High Cliff will be the first interval fracced by the Halliburton equipment and should it be capable of producing economically, can be quickly brought on stream to provide early cash flow.
Arrowsmith-2 is just 12 kilometres from a pipeline, allowing Norwest to establish production by establishing some basic facilities capable of carrying out de-watering and gas compression.
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