31/05/2013 - 14:48

Jupiter raises $9m through notes issue

31/05/2013 - 14:48

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Jupiter raises $9m through notes issue

Oil explorer Jupiter Energy has secured $US9 million through the issue of convertible notes to repay debts and continue development of its Akkar East oil field in Kazakhstan.

The terms of the notes are for three years, with a conversion price of $US1.25 per share and a coupon rate of 12 per cent per year.

Waterford Petroleum and Soyuzneftegas Capital will subscribe for $US3 million and $US2 million of the notes, respectively.

Other significant subscribers are Mobile Energy, which will pick up $US3 million of the notes, and Weighbridge Trust will take up $US1 million.

Jupiter said it would use the funds to pay back $3 million in promissory notes helf by Alabama-based Mobile Energy and to pay a fee to complete the raising.

The company will also spend $1 million to complete testing operations on its J-59 well at the Akkar East field, and undertake initial design and planning works to build

Jupiter chairman Geoff Gander said the company was in discussion with several banks and institutions for project finance, but hadn't been able to secure funds for exploration.

"As a result, there is a requirement for additional funding, in this instance, using the convertible notes," Mr Gander said.

Mr Gander said Jupiter was pleased to gain the support of its major shareholders.

At close of trade, Jupiter's stock was up 1.85 per cent, at 55 cents.

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