Rancher Energy Raises $61M in Private Placement

Rancher Energy Corp. said that it has raised approximately $61 million in a private placement of its securities. The primary purpose of the private placement is to acquire oil fields in Wyoming's Powder River Basin. The Company intends to use enhanced oil recovery (EOR) techniques, notably CO2 injection, to recover substantial amounts of oil from these fields. The Company recently announced the signing of a CO2 supply agreement with the Anadarko Petroleum Corporation.

The Company sold an aggregate of 40,694,335 shares of common stock and warrants to purchase an aggregate of 40,694,335 shares of Common Stock. The warrants are exercisable for a five-year period. The warrants will not be exercisable until the Company amends its articles of incorporation to increase its authorized number of shares of common stock. The Company has granted registration rights to investors in the private placement, and the Company will be subject to penalties if certain deadlines are not met.

Rancher Energy Corp. focuses on the oil & gas sector by specializing in evaluating older, historically productive fields in order to determine their potential for secondary and tertiary recovery.