Strata-X Energy Announces Private Placement
DENVER, COLORADO USA, BRISBANE, QUEENSLAND AUSTRALIA and VANCOUVER, BRITISH COLUMBIA CANADA - July 29, 2015 (Pacific Time - Canada) (TSX-V:SXE) (ASX:SXA)
Strata-X Energy Limited (“Strata-X” or the “Company”) is pleased to announce that it intends to raise up to A$1.5 million. The funds will be raised via a non-brokered private placement to sophisticated and institutional investors of up to 12.75 million Units in the Company at a price of A$0.08 per Unit for gross proceeds of up to A$1,020,000 (the “Placement”) plus an additional A$480,000 from the Directors of the Company on the same terms (or terms no better than the Placement), which will proceed to close once the prerequisite shareholder approval is received.
Each Placement Unit will comprise one Chess Depository Interest (“CDI”)(“Placement CDI’s”) and one option for every two Placement CDI’s subscribed for. The options will have an exercise price of A$0.12 each (convertible in to one CDI each) and expiry on 31 January 2017 (“Placement Options”). It is anticipated that the Placement will close by Monday, August 10, subject to receipt of necessary regulatory approvals, including the approval of the TSX Venture Exchange and Australian Securities Exchange. The Placement CDIs and Placement Options will be subject to resale restrictions in Canada for a period of four months and one day from the date of issuance.
The Company intends to use the proceeds from the Placement and the Directors investments as follows:
- Drill, test and stimulate two low cost vertical wells in the Illinois Basin projects targeting bypassed and/or untested high margin light sweet oil within multiple shallow reservoirs at depths of 750m to 1,110m.
- Drill and core a vertical pilot well at the Company’s Raccoon Creek prospect within the Lingle Oil Field.
- Lease maintenance and general working capital purposes.
Each Placement CDI will represent one common share of Strata-X and will rank equally with existing CDIs. All CDIs issued pursuant to the Placement are to be fully tradable and listed on the ASX, subject to the necessary approvals by the TSX-V and ASX, respectively.
The issue of Placement CDIs will be completed in accordance with the Company’s existing placement capacity pursuant to the ASX Listing Rules. The issue of Placement Options may be subject to shareholder approval. Strata-X may, subject to regulatory approval, pay a finder’s fee in respect of the Placement.
Strata-X is a Denver, Colorado (USA) based company and is engaged in the business of oil and gas exploration and development with a variety of exploration opportunities in North Dakota, Illinois, California, Texas and Western Australia and production and development opportunities in California. Strata-X has 156,584,977 common shares outstanding and trades under the symbol “SXE” on the TSX-V and “SXA” on the ASX.
|Tim Hoops (USA)||or||Colin Christensen (Canada)||or||Julia Maguire (Australia)
|President||Investor Relations||Investor Relations|
|+1 855-463-2400||+1 403-483-8363||+61 419 815 386|
This announcement was made in Canada for the TSX.V and in Australia for the ASX.