Australis in $39m placement

Australis Oil & Gas has tapped investors for $39.2 million, with the proceeds to allow for drilling to commence at the Tuscaloosa marine shale later this year.

Perth-based Australis has issued 115 million shares at 34 cents each, representing a 5 per cent discount, with strong support from existing and new investors.

The company said the net proceeds would be applied to the commencement of drilling in the TMS.

“We continue to execute our business strategy and this capital raising significantly strengthens our balance sheet, which in turn will aid our efforts to secure third-party debt funding on better terms,” chairman Jon Stewart said.

“We continue to evaluate various debt financing alternatives to supplement these equity funds.

“This new funding provides the initial capital to commence our TMS drilling campaign.

“Our aim is to repeat the 2014 productivity results achieved within the core of the TMS with the application of the subsequent industry wide drilling and completion learnings.”

Euroz acted as lead manager to the placement while Royal Bank of Canada and Arctic Securities were co-lead managers.

Shares in Australis were up 7 per cent at 38.5 cents each at 3pm AEDT.