Zeta Petroleum (ASX: ZTA) has launched a pro-rata non-renounceable rights issue of loyalty options to raise A$333,406 for working capital.
The Romania-focused company is offering one loyalty option for every four shares or CHESS Depositary Interests held at an issue price of $0.01 each. The loyalty options are exercisable at $0.30 on or before 15 July 2015.
Zeta is currently fully funded for the next stage of its exploration program with a cash position of about $4 million, as well as income from its producing Romanian asset.
The exploration program will include a well targeting oil on the Jimbolia concession, where Zeta has a 39% interest and is fully carried by farm-in partner Serbia-based NIS Gazprom Neft, which is majority owned by Russia's Gazprom - the largest gas producer in the world.
NIS will fund 100% of the cost of the next exploration well and payment of contingent cash amounts to Zeta for its 51% operating stake.
Additionally, a well on the Suceava concession, targeting shallow gas, where Zeta has a 50% interest is also planned for the December quarter 2012, as well as additional evaluation work on the Bobocu Gas Field.
Proactive Investors is a market leader in the investment news space, providing ASX "Small and Mid-cap" company news, research reports, StockTube videos and One2One Investor Forums.