CHK Oil (HKG:0632) plans to issue not more than 20,000,000 shares to investors at HK$0.385 apiece under a placement agreement, according to a Wednesday filing with the Hong Kong Exchange.

Guoyuan Securities Brokerage (Hong Kong), as placing agent, will procure investors for the placing agreement.

Net proceeds, estimated to be at HK$7.3 million, will be used to fund working capital needs of the company's oil fields in the US and to fund other business operations, the filing said.

CHK Oil shares gained 1% in Thursday's morning trade.

Price (HKD): $0.47, Change: $+0.025, Percent Change: +5.68%