17/05/2012 - 14:31

Aurora completes $120m raising

17/05/2012 - 14:31

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Aurora completes $120m raising

Aurora Oil and Gas has completed a $120 million capital raising to fund exploration and development at its shale gas acreage in Texas.

The Perth-based company said today it had issued 33.8 million ordinary shares, priced at $3.55 each, to clients of Euroz Securities and TD Securities, which acted as joint lead managers.

The shares were offered as a placement in Australia, while 18 million were released as part of a short form prospectus in Canada.

Aurora also said it would raise a further $4 million, subject to shareholder approval, through a share issue, also priced at $3.55.

“We are pleased with the results of the global offer, which was sized and priced appropriately in conjunction with our lead underwriters in light of current global market conditions,” executive chairman Jon Stewart said.

“This level of equity raise is more than sufficient to ensure the company is adequately funded for its current and planned development program and operations, the completion of the recently announced Sugarloaf acquisition, additional working capital in relation to this acquisition and our offer for Eureka Energy.”

Aurora’s stocks have slipped on the ASX today, falling 10.5 per cent to $3.47.

The capital raising caps a busy week for Aurora, which announced it would acquire a 6 per cent stake in the Sugarloaf gas field at Sugarkane for $US95 million.

Aurora’s acquisition will take its working interest in Sugar Loaf to 21.8 per cent.

That announcement followed Aurora’s $107 million on-market takeover bid for Perth-based Eureka Energy, which holds a 6.25 per cent working interest in the Sugarloaf field.

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