Strike Energy is continuing on from a recent acreage deal in the South Texas Eagle Ford and is now raising capital to fund development. The company's recent deal included acreage in Fayette County, TX. While $17 million won't get you far in the Eagle Ford, it is enough to drill a couple of pilot wells to better understand your acreage.

"The company will raise $7.4 million through a placement at 15 cents a share with private equity investor M H Carnegie & Co taking 50 per cent of the shares on offer and lead manager Blackswan Equities placing the balance of shares with clients.""Strike said the funds raised would be used to advance its Eagle Ford Shale project in Texas and the Wilcox formation slope play in Louisiana and provide additional working capital."

"Strike's managing director Simon Ashton said he believed that some of the company's new assets had the potential to be 'game-changing' energy assets."

Read the full news release at TheWest.com.au