Perth-based Central Petroleum has conditionally raised $19.35 million through a placement and an underwritten share purchase plan.
Perth-based Central Petroleum has conditionally raised $19.35 million through a placement and an underwritten share purchase plan.
The funds will be used to accelerate exploration at the company's Johnstone and Surprise projects in the Western Amadeus region in the Northern Territory, pay costs of the issue and for general working capital.
In a statement to the Australian Securities Exchange, Central Petroleum said the placement of 75 million shares to a range of institutional and sophisticated investors at 8.6 cents per share was over-subscribed and raised $6.45 million.
The company has conditionally raised another $12.9 million through the underwriting of a SPP to the level of the first 150 million shares at the same price.
The capital raising was underwritten by Patersons Securities.
See company statement below:
Central Petroleum Limited (ASX: CTP) is pleased to announce that it has conditionally raised $19.35 million (before costs) with the assistance of Patersons Securities Limited via a Placement and an underwritten Share Purchase Plan (SPP). The over subscribed Placement of 75.0 million ordinary shares to a range of institutions and sophisticated investors at 8.6 cents per share raised $6.45 million and the underwriting of a SPP to the level of the first 150 million shares at the same price to be offered to existing shareholders has conditionally raised a minimum of $12.9 million.
The issue price of 8.6 cents per share represents a 18 percent discount to the Company's last closing price of 10.5 cents. The issue was heavily oversubscribed and resulted in a scale back of institutional demand.
The funds from the capital raising will be used to accelerate exploration programs at its Johnstone and Surprise project areas in the Western Amadeus region, pay for the costs of the issue and for general working capital purposes. Central intends to rapidly finalise a contract to complete approximately 300km² of 3D seismic over the greater Johnstone and Surprise areas and plan for additional appraisal wells to delineate the potential of the Johnstone and the Surprise areas as it moves to a potential commercialisation.
Under the SPP all eligible shareholders will have the opportunity to subscribe for up to $15,000 worth of fully paid ordinary shares. No brokerage, commission or other transaction costs apply to applicants for the shares issued under the SPP.
The SPP offer is open to all holders of fully paid ordinary shares registered on the Company's share register at the record date of 27 September 2010, with a registered address in Australia and New Zealand.
Following the success at Johnstone the board has taken this step to provide an opportunity for existing shareholders to increase their participation in the future growth of the Company on similar terms to those of the Placement.
John Heugh, Managing Director of Central said "With the significant demand encountered for Central stock by institutions introduced by Patersons it would have been possible for the Company to raise the entire amount sought from capital raising through a Placement, however the Board of Central wanted to reward our loyal shareholders through participation in the SPP particularly on the back of the success encountered at Johnstone West-1 to date".
Patersons Securities Limited was the lead manager for the Placement and is also the Underwriter of the Share Purchase Plan.
