(MENAFN - ProactiveInvestors - Australia) Mako Hydrocarbons (ASX: MKE) shareholders now have an additional three weeks to participate in the company's A1.65 million Share Purchase Plan.
Proceeds from the SPP, which is partially underwritten by DJ Carmichael, will be used to further develop its technical understanding of the Duvernay Shale and Rock Creek tight sandstone plays in Alberta.
Mako had previously raised A2.2 million through a placement to institutional and sophisticated investors and has put its Provost asset up for sale.
Under the Share Purchase Plan, existing shareholders will have the opportunity to subscribe for up to A15,000 worth of new shares. This is underwritten to A1 million by DJ Carmichael.
The SPP will now close on 21 February 2013 from the original 31 January 2013.
The Duvernay Shale is an emerging world class liquids rich resource play that is the source rock for most of the conventional oil fields in Alberta that has recently attracted the attention of companies such as ExxonMobil (NYSE:XON).
It came to prominence in 2010 and 2011 when more than C2 billion was spent in land auctions for mineral rights and is widely considered to be analogous to some of the most prospect U.S. shale plays.
Wells drilled in the Duvernay have production at initial rates ranging from 900 to 1200 barrels of oil equivalent per day with high ratios of valuable natural gas liquids. Recent horizontal wells have yield between 100 barrels and 200 barrels of natural gas liquids for every million cubic feet of gas produced.
Importantly, significant activity has been carried out near Mako's acreage, which de-risks its acreage while giving it a better understanding of what it holds.