Shale Energy Limited (ASX:SLL) IPO Offers Australian Investors Springboard Into The US Oil Sector
26.11.2014 | ABN Newswire
Sydney, Australia (ABN Newswire) - Sydney-based US oil producer Shale Energy (ASX:SLL) has today declared its Prospectus open for subscription for the raising of A$3.5m. Uniquely positioned with an offering of equity shares in producing wells in North Dakota's prolific Bakken oil and gas region, SEL is minor partner to three US oil producers including $30bn-plus market capitalisation NYSE-listed EOG Resources (NYSE:EOG). SLL is currently participating in the drilling of the Horovitz production well scheduled for completion in mid-December.
Positioned as a low-cost oil producer, SLL is earning strong margins at the currently lower oil price of around $74/bbl from its working interest in the three completed wells. A further 16-27 wells are to be drilled within the well established core of the Bakken production area with SLL's share of production expected to rise to 300bbl/day, subject to the usual technical risks.
The capital raised will go towards SLL meeting its contribution to the additional well development program where the necessary approvals, permitting and infrastructure largely in place.
Shale Energy Managing Director Richard Pritchard said 'We are particularly proud to have brought a US oil revenue and growth story to the Australian market, based on this highly-established region. The upcoming wells are exciting and there is a high degree of technical confidence in the Bakken and what we expect it to yield.
'Our major partners are go-ahead companies that are increasing their rig count in the Bakken, where they each have a huge amount of experience. Our capital growth is tied to that and the growth of one of the newest US oilfields.'
The current Horovitz well has now reached its target distance of 6,700m downhole with a vertical depth ~3,350m, the hole is being lined, cemented, and perforated in preparation for stimulation. The production performance of the well should be well established by January.
The oil produced is classified as 'light sweet crude' with low sulphur and will be sold under existing marketing arrangements and rail freighted for refining in St James, Louisiana or Stroud, Oklahoma, and sale into the US domestic market.
To download the Prospectus, please visit:
http://www.abnnewswire.net/lnk/67HK73U1
About Shale Energy Limited:
Shale Energy Limited has been involved in the US oil and gas sector since 2008 in which time the Company has been able to develop the key relationships required to be successful in the US on-shore oil and gas development industry.
Source:
Shale Energy Limited
Contact:
CEO Richard Prichard
T: +61-418-617-827
W: www.shaleenergy.com.au
