Anterra Energy has closed the first tranche of its previously announced $2 million flow-through financing and commenced drilling its first Lower Shaunavon horizontal well in southwest Saskatchewan.
Through the Offering, an aggregate of 2,233,025 Class A shares were issued on a flow-through basis at $0.30 per share for gross proceeds of $669,908. An aggregate of 546,358 shares were issued to a number of Anterra directors. The shares are subject to a hold period under applicable securities laws of four months, expiring on February 9, 2009. Proceeds will be used to incur Canadian Exploration Expenses, which will be renounced in favour of the subscribers for the 2008 taxation year. Due to strong interest in the Offering, Anterra has extended the final closing until later in the month.
Anterra also announced that the commencement of drilling of the first Lower Shaunavon horizontal well in its resource play at Frontier in SW Saskatchewan at surface location LSD 04C 15-04-20W3M. The Company expects to complete drilling of the $2.2 million well by the end of October and to have results from production testing by the end of November. The well is operated and funded by partner Reece Energy Exploration Corp. Following success at a recent land sale, Anterra now holds 9,440 acres of land (4,592 net acres) over the Lower Shaunavon project, significantly extending its "footprint" over this strategic resource project. With at least five (5) horizontal wells per section required to exploit the Lower Shaunavon resource, Anterra and its partner have more than 70 potential horizontal well locations to drill on the joint venture lands.
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