Petro River Oil Corp. closed a private placement of common stock at $0.08 per share for total gross proceeds of $6.5 million on December 12, 2013. In addition, the company issued a warrant to purchase additional common stock at a strike price of $0.1356 prior to December 12, 2015.
All of the offering was purchased by Petrol Lakes Holding Ltd., a newly formed investment group based in China with ties to the country's oil and gas industry. The proceeds will be used to fund development of Petro River's portfolio including over 115,000 net acres of oil and gas assets in Kansas, Missouri and Kentucky.
Petrol Lakes is working with Petro River towards a potential joint venture with a strategic partner in China in the company's 85,000 net acres in the Mississippian Lime play in Kansas. The company is also reviewing acquisition opportunities in the Mississippi Lime play in Kansas and Oklahoma.
Petro River has formed a wholly-owned subsidiary named Petro Spring LLC to acquire and develop technologies with a focus on enhanced oil recovery.