The placement at an issue price of 34 cents per share received cornerstone interest from a small number of new substantial Australian equities fund managers.
It was also strongly supported by existing institutional shareholders.
Managing director Tor McCaul said, “We would like to welcome the new institutional investors onto our register, who were the major participants in this placement.
“We believe their investment is a strong endorsement of Comet Ridge’s high-quality asset portfolio and the significant growth aspirations of the business.”
Proceeds will be used to further advance Comet Ridge’s east coast gas portfolio and for working capital purposes.
These projects have the potential to feature prominently as short to mid-term supply solutions for a tight gas market with significant demand requirements.
“Having support from these reputable institutions will be fundamental in the medium term evolution of the company as it pursues its strategy of bringing material gas volumes into the east coast market, as quickly as possible, from low-cost onshore assets,” McCaul said.
The company’s work program which will utilise the funds along with existing cash includes:
- Mahalo project – drilling and testing of the Mahalo Joint Venture approved 2018 work program, comprising five new production wells;
- Mahalo project - environmental and other studies to support a petroleum lease and pipeline licence application;
- Galilee sandstone project – a drilling and testing program in conjunction with joint venture partner, Vintage Energy, comprising completion of Albany 1, drilling of Albany 2, and a seismic acquisition program;
- Gas portfolio exploration, appraisal and development work, including Galilee hydraulic fracture stimulation as required, and progressing FID at Mahalo; and
- General corporate expenditure and working capital purposes.
51.2 million shares to be issued
Comet Ridge will issue approximately 51.2 million placement shares within its current placement capacity, representing 7.6% of its current issued capital.
Settlement of the placement is expected to occur on Thursday, September 20, 2018, with placement shares expected to be allotted and to commence trading on the ASX on Friday, September 21, 2018.
The new shares will rank equally with the company’s existing fully paid ordinary shares.
Taylor Collison was lead manager of the placement and Integra Advisory Partners acted as Comet’s corporate advisor.