elk petroleum seeks a$5 million at 25 cent, page-5

http://www.theaustralian.com.au/business/wall-street-journal/oil-player-elk-petroleum-seeks-5-million/story-fnay3vxj-1226490494622

Oil player Elk Petroleum seeks $5 million
BY: GILLIAN TAN From: The Wall Street Journal October 08, 2012 10:58AM


IN Australia, small is beautiful.

Last week, a total of $100 million was raised from12 deals, and the trend seems to be continuing.

Rocky Mountains-focused oil and gas developer Elk Petroleum is seeking around $5 million to help fund projects, a person familiar with the matter told Deal Journal Australia.

The equity raising, led by DJ Carmichael, will see new shares issued at 25c each, a 19.4 per cent discount to the stock’s last-traded price, the person said.

Funds will be used to advance development at Elk’s Ash Creek Field project which is located on the border of the US states of Wyoming and Montana.

The company’s flagship asset is its Grieve Field joint venture which it owns alongside US-listed Denbury Resources. Denbury recently sold its stake in the Bakken Shale, North Dakota, to Exxon Mobil for $1.5 billion in cash and interests in two oilfields.


Elk entered a trading halt early today pending the completion of a capital raising program.

As recently as September 24, DJ Carmichael initiated coverage of Elk with a Buy recommendation and a price target of 47c a share, describing the company as offering production growth with little exploration risk.