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Hot on the heel of these announcements, the company called for a trading halt pending the release of an announcement. The shares will remain in pre-open until the normal trading begins on 14 February or the announcement is released to the market, whichever comes first.
It is unclear whether this announcement is linked with the latest fund raising.
The $2.75m has been raised by the issue of 13,095,238 convertible notes at 21 cents per note. It will be used for drilling the Webb-1 well at the Flour Bluff prospect in Texas.
These notes are convertible to 13,095,238 ordinary shares and 4,365,079 options exercisable at 25 cents and expiring five years after the date of issue. Conversion of the convertible notes is subject to Tony Barlow selling its 51% interest in the Tony Barlow suit hire business and shareholder approval to convert to an oil and gas company.
Currently, Tony Barlow is not allowed to undertake an equity issue until it makes a decision to convert from an industrial company to an oil and gas company. This would require a meeting of shareholders and the issue of a prospectus. The directors have not yet resolved to do this, the company said in a statement.
In the meantime, one of the investors who has agreed to subscribe for the convertible notes will be appointed as a non-executive director. Successful Canadian businessman P Gren Schoch is an experienced and successful oil and gas operator and investor based in Toronto, Canada, Tony Barlow said.
According to the company's ASX statement, Schoch built an engineering firm to a C$150 million turnover at its 1997 sale and founded the Petromet Resources in 1982 which was sold to Talisman Energy for more than CDN$900 million in 2001.
In 2002 Schoch and former senior managers of Petromet Resources Limited founded Kensington Energy Limited with Schoch as its chairman. The Toronto Stock Exchange-listed company is focused on natural gas exploration and production in western Canada. Kensington Energy Limited is currently the subject of an agreed takeover bid by Viking Energy Royalty Trust for aggregate consideration of C$34.6 million plus the assumption of bank debt of about C$12 million.
