Firms: Ashurst (Euroz Securities Limited); Steinepreis Paganin acted as Australian legal adviser and Baker & McKenzie acted as US legal adviser for Red Fork Energy Limited
Deal: Underwritten share placement
Value: A$50 million
Key players: Corporate partner Roger Davies led for Ashurst
Deal significance: Oklahoma-based and ASX-listed oil and gas exploration and production company Red Fork Energy Limited announced on 10 August 2012 an equity raising of A$50 million via an underwritten placement of approximately 74.63 million new ordinary shares at an issue price of $0.67 per share to qualified institutional and sophisticated investors. The issue price is at an eight per cent discount to the last closing share price.
The additional funding will allow the company to continue and accelerate its operated Mississippian project drilling program, maintain ongoing leasing within the Mississippian play, and provide additional working capital.
The placement is subject to shareholder approval at an Extraordinary General Meeting, to be held for that purpose, on or around 13 September 2012.