Here's why the Enegex share price has surged 103% higher today

The Enegex Ltd (ASX: ENX) share price has surged 103% higher today following the announcement of a successful capital raising.

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The Enegex Ltd (ASX: ENX) share price has surged 103% higher today to be currently trading at 6.5 cents per share.

The rapid share price rise follows an announcement of a successful capital raising. An additional raising to be implemented in the coming weeks will further fuel its expansion strategy.

Enegex is a petroleum exploration company that operates in Western Australia. The ASX microcap currently has a market capitalisation of around $5.23 million.

Details of Enegex's successful capital raising

Enegex announced today that placement of 20 million fully paid has successfully raised $440,000 for the company at 2.2 cents per share. Unlisted options are to be issued by Enegex on a 1-for-2 basis, and are exercisable at 3 cents on or before 31 August 2022.

The company had been previously approached by a group of sophisticated and professional investors with an offer of investment. This offer has been accepted and the transaction was settled via Fresh Equities Pty Ltd.

The funds raised from the placement will be used to further Enegex's exploration projects, which will be strongly focused on its South West Terrane initiative. The company has already established a significant tenement position in this emerging region of Western Australia. In a presentation released to the market today, Enegex noted that it has a 100% interest in a total of 4 projects areas comprising 20 tenement applications that cover 3,550 square km areas in the area. 

Further $760,000 to be raised

Enegex noted its intention today of raising addition funds of around $760,000. This will be done via a pro-rata shareholder entitlement offer during the next few weeks, under similar terms to the current raising.

Enegex chair Geoff Albers commented: "It will be an exciting period ahead for Enegex as we initiate our planned programs to unlock the geology of our tenements in the South West Terrane. Enegex welcomes new shareholders and thanks new and existing shareholders for their support. We look forward to delivering on our exploration programs."

How has the Enegex share price performed lately?

The Enegex share price has been trading around the 1 cent mark over the past 12 months up until late May. It then climbed up to around the 3 cent mark by close of trade yesterday, before its meteoric rise today.

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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