Fall River Resources started trading last Thursday at a slight discount after raising $6.37 million in a capital raising. After being issued at 20 cents, FRV shares opened at 19 cents and closed at 18 cents in the first day’s trading.
Pryme Oil and Gas Ltd started trading on Friday at a 22.5% premium to its A20c issue price. PYM first traded at 1200 (EST) Friday at 24.5c.
Fall River is already listed on the Toronto Stock Exchange. It has Australian management but holds oil and gas interests in Canada and the US.
The company plans to use the new funds to expand its portfolio of properties comprising near term production with development opportunities to expand that production.
Fall River has just competed settlement of its acquisition of the 20% interest in Sprowl Gas Field in Oklahoma, USA by paying $US2.6 million and issuing 1.5 million shares and 500,000 share options.
Fall River has also paid US$510,000 as its share of the costs to date for drilling two additional wells at Sprowl. These wells were completed in February 2006 and have now been placed into production.
The company now has a 20% interest in four producing gas wells at this field. The Sprowi joint venture aims to drill two additional wells in July 2006.
Meanwhile, Pryme has issued 35 million shares to raise $7 million, which it plans to spend developing conventional oil and natural gas, coalbed methane and shale gas resources throughout North America. Its business plan is reminiscent of the rationales followed by several recent new petroleum players – to raise money in Australia and exploit niche "engineering plays" near good infrastructure in the US.
Before starting an exploration program, the company is purchasing existing oil production in the Wilcox Basin. The first acquisition will be the LaSalle Parish Project, in Central Louisiana - an area known for its prolific, long-life oil production, according to Pryme.
The company has agreed to pay the current owners of LaSalle Parish $US3.11 million ($A4.21 million) and issue them with 3.3 million shares for an interest in the project.
The project comprises 21 separate oil wells, five formation water disposal wells and associated facilities located in six separate fields with leases covering about 1125 acres. The first well was drilled in 2001 and the project produces a regular, systematic monthly income from oil sold, according to Pryme.
Pryme intends to make further US oil and gas acquisitions and participate in additional early stage 3D seismic, conventional oil and unconventional natural gas projects.
"Planned acquisitions will also extend to engineering projects such as production enhancement of existing fields and development of blanket, low-permeability reservoirs in the US," the company said.
"These areas may include the Gulf Coast region, the Midwest and the Rocky Mountains."
