09/12/2013 - 10:22

LNG Ltd plans $15m equity raising

09/12/2013 - 10:22

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Perth-based oil and gas explorer Liquefied Natural Gas has announced plans to raise $15.3 million through a share placement as it looks to advance its Magnolia LNG project in the United States.

LNG Ltd plans $15m equity raising

Perth-based oil and gas explorer Liquefied Natural Gas has announced plans to raise $15.3 million through a share placement as it seeks to advance its Magnolia LNG project in the US.

LNG will issue about 45 million fully paid ordinary shares to sophisticated and professional investors at an indicative price of 34 cents per share, which represents an 11 per cent discount to the company's five-day volume weighted average price.

The pricing of the placement will be finalised following a review of the lead manager's demand, with the proceeds expected to range between $15.3 million and $16.2 million.

Foster Stockbroking will act as lead manager to the placement.

"We have completed extensive marketing to investors in recent months and the response has been very supportive," LNG managing director Maurice Brand said.

"I am expecting the placement to receive solid support and the company will then be well funded during the final approvals process and development phase in calendar year 2014."

The company is developing its flagship Magnolia LNG project on the Port of Lake Charles in the American state of Louisiana and is targeting production of up to 8 million tonnes per annum.

LNG shares entered a trading halt this morning at 36 cents.

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