(MENAFN- ProactiveInvestors - Australia) Yeeda Oil (ASX: YDO) is banking on interest in Buru Energy's (ASX: BRU) successful exploration in the onshore Canning Basin to drive interest in its IPO, which seeks to raise up to A$9.6 million through an issue of 48 million shares at A$0.20 each.
The early stage oil and gas exploration company's IPO closes on 24 August and is currently proposed to list on 7 September 2012.
The company's entry into the industry will be marked by its acquisition of non-operating interests in two projects within the onshore Canning Basin, Western Australia.
Yeeda has entered into agreements to acquire interests in drilling reservation DR9 from private company Backreef Oil and exploration permit application EPA 8/06-7 upon its grant from Backreef and other companies.
The company is earning a 50% interest in DR9 by funding the drilling of a well on the Emika Prospect, which is covered by a 1 kilometre by 2 kilometre seismic grid.
Yeeda is also earning a 22.5% interest in EPA 8/06-7 by sole funding A$4 million of expenditure on the White Hills project.
Previous drilling of the White Hills-1 well on the flank of the prospect in 1982 recovered 36 degrees API oil from 1625 metres in the Fairfield Formation.
Log data over an interval from 1018 metres to 1026 metres in the Anderson Formation was also interpreted as the sandstone containing a transition zone located at the margin of an oil accumulation.
A lower zone between 1082.7 metres and 1083 metres is also interpreted as a potential producible sand.
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