Adelphi in $5.7m capital raising

West Perth-based Adelphi Energy Ltd plans to raise $5.7 million through a non-renounceable rights issue with major shareholder ARC Energy Ltd subscribing for about 32 per cent of shares.

Aldephi's issue of shares is on the basis of one share for every six shares held at an issue price of 32 cents apiece to existing shareholders.

The maximum number of shares which may be issued under the rights issue is estimated to be approximately 17.7 million shares to raise approximately $5.7 million.

The offer is scheduled to open July 24 and the closing date August 8 2008.

Adelphi said the rights Issue is not underwritten and any shortfall arising may be placed to shareholders registered on the record date or exempt investors at the discretion of the Adelphi Board.

Hartleys Limited has been appointed as sponsoring broker to the rights issue.

Adelphi's major shareholder and strategic partner, ARC Energy Limited has committed to take up its full pro-rata entitlement in relation to its 32% shareholding. This entitlement is approximately 5.7 million shares which is a subscription of approximately $1.8 million.

The capital raised by this issue will be fund the company's existing exploration, appraisal and well testing commitments of its assets in the US, Yemen and Australia. The funds will also assist Adelphi to advance additional high leverage exploration opportunities in its new venture acquisition program.