South Perth-based coal seam gas explorer Pure Energy Resources Ltd has completed a $15 million capital raising with funds to head towards exploration costs on projects on the east coast.
South Perth-based coal seam gas explorer Pure Energy Resources Ltd has completed a $15 million capital raising with funds to head towards exploration costs on projects on the east coast.
The raising was via a share placement with over 8.8 million shares issued to existing and new institutional investors priced at $1.70 each.
Below is a copy of the full announcement
The Directors of Pure Energy Resources Ltd (ASX: PES) (Pure or the Company) are pleased to announce the completion of a $15 million capital raising by way of a Share Placement which closed heavily oversubscribed with strong support from both existing and new institutional investors.
Funds raised, together with cash on hand will be used for a planned thirty well program targeting certification of 2P reserves of 300PJ over its existing coal seam gas (CSG) discoveries in permits ATP's 806P and 852P, and permit application 889(A), which is expected to be granted later this year. The Company estimates the 2C* Contingent Resource in these permits to be in excess of 2000 PJ. These three permits constitute approximately 5% of Pure's total Queensland acreage.
Funds will also be directed towards the ongoing exploration of its extensive acreage in the Duaringa Basin (ATP's 758P and 759P), the Walloon play in application ATP965(A), once granted, and its Tasmanian license (SEL 32/2003).
The placement was undertaken by way of a book-build with the issue of 8,823,530 fully paid ordinary shares at an issue price of $1.70 per share, with Wilson HTM Corporate Finance Limited as manager and bookrunner.
Pure's Managing Director Steve Beardsall said, " The placement attracted a quick book-build of firm bids, indicating the continued strong interest and market support for Pure's existing projects and development plans."
" The Company is very pleased with the response from both existing and new institutional investors who participated in the placement, and I welcome those new institutional investors as shareholders of the Company. "
" As detailed above, the funds will be used to target 2P reserves of 300PJ within the next twelve months over our three existing CSG discoveries including an aggressive appraisal and pilot campaign planned for ATP889P(A), on granting. This means the Company can further benefit from expected increases in demand for east coast gas from both the domestic market and up-coming LNG projects."
"This will take the Company to the next phase of its development, at the same time deliver further shareholder value," he said.
Settlement of the placement shares is expected to take place on Tuesday 24 June 2008, and quotation is expected from commencement of trading on Wednesday 25 June 2008.
*Contingent Resources are those quantities estimated to be potentially recoverable from known accumulations, but where the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies (such as the current data set being not yet sufficient to clearly assess commercially)
