Funds earmarked for key gas plant works and seismic activity in Beetaloo Basin
Baker McKenzie has advised Beetaloo Energy Australia Ltd on a $66.3m capital raising comprising a placement and a share purchase plan.
Sydney-based Beetaloo Energy, an ASX-listed upstream gas company focused on the appraisal and development of unconventional gas resources in the Beetaloo Basin in the Northern Territory, has received binding commitments to raise $66.3m through a placement of new fully paid ordinary shares to institutional and sophisticated investors at $0.28 per share.
The placement attracted demand from both local and international institutional and sophisticated investors, according to the company.
Funds raised, together with an upsized $45m midstream infrastructure facility and existing cash reserves, are intended to support development activities across the Beetaloo Basin. These include completion of Carpentaria Gas Plant works, continued flow testing at Carpentaria-5H, preparation for future work programs, seismic acquisition and interpretation in Western Beetaloo, investment in Territory Sands, corporate and Northern Territory operations through to first gas, partial repayment of a research and development credit facility with Macquarie Bank, and additional working capital requirements, including transaction costs.
Beetaloo Energy also plans to launch a non-underwritten share purchase plan to raise up to $5 million. Eligible shareholders will be able to apply for shares on the same terms as the placement, without brokerage fees.
The company has described itself as a first mover in the basin, holding a 100% interest in about 3 million net effective acres in the Beetaloo Basin, with more than 46 trillion cubic feet equivalent (TCFe) 2U resource and more than 1.6 Tcf 2C resource, and less than 1% CO₂ content.
“We are delighted to have advised Beetaloo Energy on this capital raising to finance the completion of the Carpentaria Gas Plant which is designed to provide energy security for the Northern Territory and will be the first, to date, to produce gas from the Beetaloo Basin for commercial sale,” said Baker McKenzie lead partner Lance Sacks.
Sacks was supported by associate Ed Dymond.
