Fremont Petroleum Completes $5.1m Placement

  • Mar 26, 2019 AEDT
  • Team Kalkine
Fremont Petroleum Completes $5.1m Placement

Fremont Petroleum Corporation, Ltd. (ASX: FPL) operates as an energy production company. The Company explores and develops natural gas and crude oil. Fremont Petroleum Corporation serves customers in the United States and Australia.

The company, today on 26 March 2019, has reported that it has completed a two-tranche Placement (“the Placement”) through the issue of 395,171,998 new fully paid ordinary shares to sophisticated and professional investors at $0.013 per share to raise AUD$5.1 million before costs. Bell Potter Securities Limited acted as Lead Manager to the Placement.

The issue price represents a discount of 0.42% to Fremont’s 30-day VWAP of 0.0131c and a discount of 3.60% to Fremont’s 15-day VWAP of 0.0135c. Funds will be used to advance the development of the Company’s 100% owned, 21,500-acre Pathfinder property in Colorado with significant activity planned in the next quarter. These activities include finalising of drilling and undertaking completion works on the Amerigo Vespucci vertical well, again in collaboration with Schlumberger; Undertaking a 3D seismic survey over 4.75 square kilometres (1173acres/1.83 sq. miles) of the Pathfinder Field to assess new production zones; Funding an updated Reserve & Resources report to factor in new production realised from the recently drilled J.W. Powell well and the Amerigo Vespucci well and finally progressing the Company’s gas sales strategy including pre-construction works on gas gathering and pipeline build planning.

Also, the company has released its investor presentation. As per the same, the production success has re-priced Pathfinder’s acreage by a minimum of 5x to potentially 26x. The J.W Powell production proves that its Niobrara acreage should be of enough worth. The management feels that the Pathfinder’s Niobrara Formation is untapped – it is like walking into the Wattenberg Field in the 1970s. The 21,500 acres of Niobrara shale would trade at a substantial premium to the current value per acre. Being 100% owned & operated is a significant value driver, and thus the company has control over every dollar & development.

Fremont’s Executive Director Tim Hart said that the company now has got the financial flexibility to add significant value in the short term. The management expects to be back on location at the Amerigo Vespucci well around mid-April, and they are again collaborating with Schlumberger on an enhanced fracture stimulation and completion program that will be further enhanced from the J.W. Powell program. Further value will also be added through completion of new 3D seismic over a new area at Pathfinder and through the publishing of an updated Reserves & Resources report which is likely to show an increase in the field’s oil and gas resources.

On the price-performance front, the stock has posted the YTD return of 100%. The company also has posted returns of 71.43% over the past six months. At the time of writing (26 March 2019 AEST 04:00 PM), the stock of the company was trading at a price of A$ 0.014, up by 16.667% during the day’s trade with a market capitalisation of ~A$ 15.28 Mn. The stock reached the intraday high of $ 0.016 and touched an intraday low of $ 0.014, with an average daily volume of ~ 28,313,949. It had a 52-week high price of $ 0.019 and a 52 weeks low price of $ 0.005, with an average volume of, 10,457,971 approximately.


This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.


All pictures are copyright to their respective owner(s) does not claim ownership of any of the pictures displayed on this website unless stated otherwise. Some of the images used on this website are taken from the web and are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it below the image.


There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK