Whitebark Energy (ASX:WBE) has launched a share placement to raise $517,000 to fund the workover of its Rex-3 well in Alberta, Canada.

The oil and gas junior plans to raise the funds via the issue of about 28.85 million shares at $0.02 per share to sophisticated and professional investors. 

Whitebark says the Rex-3 well workover is anticipated to double its total field production, with the workover process to be completed within the week. 

The issue price of the new shares matches Whitebark’s trading price on the ASX over the past 2 weeks. 

Whitebark notes the capital raising was well supported by new and existing investors and was led by Melbourne-based investment management firm Peak Asset Management. 

The capital raising will be completed over two tranches, with the first tranche to raise $322,969 through the issue of about 16.148 million shares. 

Whitebark intends to raise the remaining $194,031 in tranche two, subject to shareholder approval at an upcoming extraordinary general meeting (EGM).

The shares issued under both tranches will include a one-for-one attaching option with an exercise price of $0.03, expiring on 1 January 2027. 

Whitebark Energy is an ASX-listed oil and gas explorer and producer in Canada. Its Canadian project is operated by its wholly owned subsidiary, Rex Energy. 

Write to Aaliyah Rogan at Mining.com.au

Images: Whitebark Energy