Junior oiler Prairie Provident Resources Inc (TSE:PPR) has brought in $5.5 million gross, after closing its previously announced bought deal financing and private placing, it said, as it also revealed it was expanding its light oil drilling at the Evi asset in Alberta.
In the bought deal financing, the company issued over 6.8mln subscription receipts at $0.39 each and over 3.7 mln shares on a "flow-through" basis for total gross proceeds of around $4.4 million.
In addition, the firm closed its previously announced private placement with a strategic investor of a further 2.78 million subscription receipts at $0.39 per receipt for gross proceeds of around $1.1 million, it said in the regulatory statement.
Prairie also said it had expanded its planned light-oil Granite Wash drilling program at Evi to four exploration wells (3.5 net).
The Evi exploration program will kick off this month (October), 2018, at an estimated cost of around $1.5 million per well to drill and complete.
In addition to its exploration program, Prairie Provident also plans to drill two lower-risk Slave Point light-oil development wells in the area following the completion of its exploration program. These wells are expected to come on stream in February and contribute to first quarter 2019 production.