BioPharmica expands to oil & gas

Perth-based biotechnology outfit BioPharmica plans to raise $20 million to fund an investment opportunity in oil and gas explorer Advent Energy.

BioPharmica said today it had been offered an exclusive option to invest in Advent on similar terms to that offered to Talbot Group Holdings.

BioPharmica will be able to acquire between 9.7 per cent and 19.4 per cent interest in Advent at 50 cents a share.

The company said it intends to raise about $20 million before costs to proceed with the proposed investment, which is subject to shareholder approval.

Investors appeared to like the Advent opportunity, with share in BioPharmica closing up 3.5 cents, or 29 per cent, to 15.5c today.

"The investment in Advent presents BioPharmica shareholders with the capacity to reduce investment risk in their shareholding whilst retaining their interest in the core activities and investments of BPH," the company said.

Advent holds a portfolio of petroleum exploration and near-term development assets through Australia, with its flagship gas project located offshore Sydney.

Advent has previously secured a $7 million conditional funding agreement with Talbot Group Holdings.