Australian oil and gas producer, Mosaic Oil N.L.
(ASX:MOS) has raised $10.9 million via a placement of 94.74 million shares at 11.5 cents a share.
The company says the placement was heavily oversubscribed from a range of sophisticated and institutional investors.
Chairman David Herlihy says the immediate and positive response from sophisticated and institutional investors is extremely encouraging.
Mosiac says directors of the company have also subscribed to participate in a placement on similar terms.
The funds raised through the placement and a share purchase plan will be used to finance Mosaic Oil’s exploration and development plans with a particular emphasis on drilling new oil wells to maximise liquid hydrocarbon production rates.
Mosaic Oil has posted net profits in the last four years.
