Caza Oil & Gas (LON:CAZA, TSX:CAZ) has closed the fundraising it announced on Monday to the full amount of £18.9 million, or C$30.6 million.
As planned, the company issued 45 million shares at 42 pence to investors in the UK. The new shares represent 27.4 percent of the enlarged share capital. The placing was arranged by Cenkos Securities.
The company plans to accelerate the three-well development programme on the Bongo project in Texas.
It will also fund drilling across the exploration portfolio – with wells planned at Cook Mountain, in the West Texas Permian Basin, Windham Wolfberry and on the Bolmex trend in Louisiana.
“We believe our work-over program and current developments should grow production levels in the near term and the revenue generated should contribute towards further exploration and development activity,” chief executive W. Michael Ford said this week.
“We also intend to reprocess additional seismic data to identify further targets."
The funding will support the 2011 exploration programm,e with extra drilling is being planned on the Cook Mountain play as well as a work-over program on several Permian Basin wells and a limited development programme at the Windham Wolfberry property.
Caza also plans to use the new capital to take a bigger stake in the Arran and Tiree prospects on the Bolmex trend in Louisiana. At least three wells are planned for Bolmex prospects in 2011.
Disclosure: No positions