Western Standard Energy Corp., (WSEG.OB), an oil and gas exploration company, recently announced the signing of a $15 million Stock Issuance Agreement with Infinity Energy Investments to finance ongoing exploration and production strategies. Western Standard aims to secure and develop a portfolio of oil and gas properties throughout the central and western portions of the U.S.
This agreement provides capital to Western Standard Energy Corp., rather than incurring new debt and thereby minimizing the immediate dilution effect that a large investment would bring. The investment funds will be paid in increments of $250,000 upon request by the company. This financing will support the further development of the company’s Lodgepole reef prospects in North Dakota and fund operations of the Federal 1-19 discovery well in Valley County, Montana.
The Energy Department’s Energy Information Administration now predicts that average oil prices will reach $110 a barrel in 2008, up $9 from last month’s forecast. Western Standard Energy Corp. will benefit from the timing of this agreement to prove commercial quantities of oil or gas from the Bakken formation in Montana and North Dakota, which offer excellent potential profit margins.
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