Proactive Investors reported that Metgasco is raising AUD 10 million to fund its lateral coal seam gas wells and licence well commitments in the Clarence Moreton Basin, New South Wales.

These consist of three dual lateral wells costing about A7 million and 4 core wells totalling about AUD 3 million to meet licence commitments.

The company has received binding commmitments from existing shareholders and new institutional and sophisticated investors for about A10 million worth of shares priced at AUD 0.20 per share.

In addition, Metgasco will offer eligible shareholders to apply for up to AUD 15,000 worth of new shares under a share purchase plan further details of which will be provided soon.

Metgasco holds three wholly owned tenements covering 1.1 million acres in the Clarence Moreton Basin. These hold 411.4 billion cubic feet of proved and probable reserves which have been established in just over 10% of its acreage.

Source - Proactive Investors

(www.coalguru.com)