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Austin exploration raising funds for new shale exploration programme

Oilfield Technology,

Austin Exploration Ltd has resolved to raise up to approximately $20 million to fund a new drilling campaign in the Eagleford and Niobarra shale areas. The company plans to raise the funds through a share placement and a shareholder share purchase plan.

In addition, Austin will undertake a shareholder share purchase plan which will be capped at $5 million, allowing Austin shareholders registered on Monday 20 February 2012 to subscribe for Shares up to the amount of $15,000 each.

The Company intends to use funds raised pursuant to the Placement and SPP to undertake the following activities:

  • Drill and complete two vertical wells on the company's Eagle Ford shale project, and complete the recently drilled well on the Eagle Ford shale project.
  • Drill and complete a single horizontal well in the most prospective of the first three vertical wells drilled on the company's Eagle Ford shale project.
  • Drill and complete two horizontal wells on the company's Niobrara shale project; and drill and complete one well at Austin's Mississippi Wilcox project.

Commenting on the success of the Placement, Austin's CEO Mr Guy Goudy said, "We are delighted by the strong support received for the Placement, which was significantly oversubscribed, and strengthens Austin's Share register. We see this as an important step in the transformation of Austin into a significant onshore USA producer of oil and gas and one of the ASX's premier exposures to the highly successful USA shale sector."

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