Elko Energy, the private oil exploration and development company with interests in the North Sea, Canada and China, has successfully completed a pre-IPO fundraising of US$18 million. US$ 12 million was raised from new equity shareholders through stockbrokers, Jennings Capital and Cormark Securities, with the balance US$6 million coming from the existing major shareholder Xtract Energy Plc. Xtract Energy Plc through wholly owned subsidiary Xtract International Ltd holds 35.24% of the enlarged issued capital of Elko.
Proceeds from the placing will be used to acquire 3D seismic for Elko's Dutch North Sea licences, to procure well development equipment for the appraisal drilling in The Netherlands, and to continue preparations for drilling the exciting exploration prospects in the Danish sector.
"Our ability to successfully complete this fundraising in the present difficult market conditions indicates strong investor confidence in the company's future," said Founder, Director and Chief Executive of Elko Rudolf Kleiber. "The strong support shown from major institutional investors has been extremely pleasing and Elko has achieved a key milestone in its development. We look forward to further developing our attractive asset base during 2008 and beyond."
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