Sydney-based gas producer AWE will raise $38 million via a share placement to fund the next stage of the Waitsia gas field project in the Perth Basin.
AWE has a 50 per cent stake in the project, which has been touted as the largest onshore conventional gas discovery in Western Australia for decades, while Sydney-based Origin Energy holds the remaining share.
The placement will comprise 76.9 million shares at 50 cents per share, a 10.7 per cent discount, with RBC Capital Markets acting as the sole manager.
In statement to the ASX, the company said the share placement would provide adequate equity to fund AWE’s share of the Waitsia Stage 2 project if a build-own-operate development model was selected, or part fund AWE’s share if an engineering procurement construction development model was selected.
“AWE is firmly focused on delivering its key growth initiatives, particularly stage 2 of the Waitsia gas project and the marketing of our uncontracted east coast gas reserves,” he said
“The successful Waitsia appraisal program has substantially de-risked the field’s sub-surface modelling and proved up substantial additional reserves.
“This equity raising will provide partial funding for stage 2 of the Waitsia gas project while providing AWE with the flexibility to achieve the best possible outcomes in terms of east and west coast gas sales and the construction options for the Waitsia stage 2 facilities.”
The money will also be used to strengthen AWE’s balance sheet and fund other existing projects including the Casino-Henry Project.