The company today said it raised the funds through the placement of about 8.85 million shares at 61c each to a UK-domiciled fund based in Perth, Oceanic Asset Management, ACDS Australian Natural Resources Fund and to CK Locke & Partners of Perth.
Golden State said Paradox Basin-1 continues to recover a lost section of drill pipe left in the hole, attached to a casing hanger above 9150 feet (2789m).
The Perth-based company said since its last announcement, 246ft of drill pipe had been recovered from the well using washover pipe but difficulties running washover pipe meant that the remaining lost pipe would be milled.
It said it would now how long the milling operation would take once the milling production rate has been assessed.
Golden State said its directors were pleased with the success of the recovery operation to date, “albeit at a frustrating slower pace”.
“A course of maximum care has been taken to protect this potentially producing well and the shareholders’ interests, versus more extreme and risky recovery techniques,” it said.
Once recovery is completed, the well will drill on into the major objective Leadville Limestone.
Paradox Basin-1 is at 4692m in the Pennsylvanian Molas Formation, a distinctive terra rossa palaeosol horizon formed on the top of the Leadville Limestone, the primary objective of the well.
