The Octanex Ltd (ASX: OXX) share price is surging today after the company announced its exploration program funding has been secured.
Octanex shares are currently trading 11.66% higher at 6 cents per share, after lifting by as much as 28% earlier today.
Octanex is a microcap oil and gas company engaged in exploring and production activities in offshore Western Australia. The company's projects include the Ophir oil field, Greater cornea fields, and the Ascalon gas discovery.
Octanex's new exploration funding
The company raised the exploration funds through successfully completing a capital raising placement. The placement consisted of 15,000,000 ordinary fully paid shares at 5 cents per share with one-for-two unlisted options, to raise $750,000 (before costs).
The company acquired the capital through sophisticated and professional investors, which were introduced through a private equity firm.
According to the company, the funds raised will be used to advance exploration at the company's projects, particularly its Sefton Project initiative where the company has established an extensive tenement position in this region where there is very little modern exploration.
Octanex management comments
Octanex Chair, Geoff Albers, explained further how the funds will be used:
The placement funds will be used to advance our knowledge of the company's Sefton Project tenements. It will be an exciting period ahead for Octanex as we initiate our planned programs to unlock the geology of our tenements. Octanex thanks new and existing shareholders for their support. We look forward to delivering on our exploration programs.
Octanex share price snapshot
The Octanex share price has lost 17% overall the past week despite today's huge gains, but is still up a whopping 120% this month, and 450% over the past 12 months.
