It is now moving to raise $US60 million to repay creditors and acquire Texas-based Maverick Drilling Company, a profitable contract drilling company.
Don Henrich of Maverick Drilling Company will become chairman and managing director of the reorganised company.
The company has lodged with ASIC and the ASX a prospectus to raise up to $US60 million at 25c a share.
Outgoing chairman, Roger Clarke said it needed at least $US25 million to achieve its objectives and had already received commitments from United States investors for in excess of $US40 million.
Current shareholders will be given a priority allocation of 15 million shares.
The company will also consolidate its capital on a two-for-three basis, effective this Friday.
The roughly 73.8 million shares on issue will be consolidated to about 49.2 million shares.
The company has applied to be reinstated to quotation on the ASX as Maverick Drilling International.
“If the ASX agrees to reinstate the company’s shares to quotation, we expect that the company will be reinstated to quotation on about September 14, 2007,” Clarke said.
