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Energy

Jadestone Energy raises US$85mln with help of biggest shareholder

Jadestone Energy PLC (AIM:JSE), the Asia-Pacific-focused oil and gas group, has raised US$85mln through a placing and subscription to tide it over until first gas is produced from its Akatara development in Indonesia.

Major shareholder Tyrus underwrote the funding, which comprised a US$50mln placing at 45p and a US$35mln standby facility.

The price was around an 8% discount to the company's closing share price yesterday, with Tyrus subscribing pro rata to its existing 26.45% interest

Up to a further US$8.3mln can be generated through an open offer to other existing shareholders at the same price, the receipts of which will reduce the size of the Tyrus equity standby facility.

In a statement, Peter Blakeley, chief executive, commented: "I would like to thank all participating shareholders for their support in this financing which, alongside the RBL, now underpins our near-term production growth and the diversification of our production and revenue base.

“Now that routine operations have been restored at Montara [offshore Australia] and with a visibly stronger balance sheet, we have great confidence in delivering the company's growth trajectory."

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