Rally Energy completes $3.3 million financing
Rally Energy has completed its $3.3 million flow-through common share offering of 5.5 million common shares. The offering was priced at $0.60 per share and was placed pursuant to applicable securities laws exemptions.
To date, $2.8 million of the offering has closed and $500,000 has been deposited in an escrow account that is to be released to Rally Energy on or prior to December 31, 2002.
On November 12, Rally Energy commenced a four well 2002 development drilling program in the Issaran oilfield in Egypt. This program is designed to increase production, prove up additional reserves and test improved drilling and completion techniques. To date three wells, designated as No. 19, No. 20 and No. 22, have been drilled and completed and a fourth well, No. 21, is currently drilling.
The average cost of the four wells is expected to be approximately $250,000 per well to drill and complete. Based on encouraging results from the current four well development drilling program, combined with the interpretation of our 80 square kilometers of 3-D seismic data, a full field development plan for the Issaran field will be developed. — (menareport.com)
© 2002 Mena Report (www.menareport.com)