Triangle Energy (Global) Ltd has launched a non-renounceable, pro rata rights issue offer for eligible shareholders intending to raise approximately $1.5 million before costs.
This follows a recent placement to institutional and sophisticated investors in which the company raised $5 million.
READ: Triangle Energy raises $5 million to drill Perth Basin opportunities
In the new capital raising initiative, eligible shareholders will be offered one new share for every 17 shares held at the record date at an issue price of $0.016 per new share.
The offer also includes one attaching new option for every two new shares subscribed for with each option exercisable at $0.025 and expiring on June 30, 2025. These will be in the same class as the company’s existing Listed Options.
Top-up facility
There will also be a top-up facility in which eligible shareholders who take up their entitlements in full may also apply for additional new securities.
The entitlement offer and top-up facility open on March 8, 2024, and close at 5:00pm (AWST) on March 25, 2024, unless they are extended.
Same terms as placement
Triangle managing director Conrad Todd said: “We are pleased to be able to provide eligible shareholders with the opportunity to participate in the equity raising on the same terms as the placement via the entitlement offer."
This offer is at the same terms as the placement with capital raising funds to be used to advance the company’s onshore Perth Basin projects ahead of drilling which is planned for the second quarter of 2024.
The placement was strongly supported with demand significantly in excess of the placement size with Triangle Energy hoping for similar support in the rights offer.
After the placement, Todd said: “The Perth Basin is one of the most exciting onshore oil and gas basins in the world with multiple significant gas discoveries since the Waitsia discovery in 2014.
“Triangle’s exploration acreage in the Perth Basin has not been drilled for 30 years, during which time the introduction of 3D seismic data has played a pivotal role in some of the basin’s major discoveries.
“Numerous high-quality targets”
“Recent 3D seismic surveys have revealed numerous high-quality oil and gas targets within Triangle’s tenure, with drilling of the Booth and Becos targets planned for Q2-Q3 this year.
“Drilling costs will be substantially met by JV partners, with Triangle retaining a 50% project interest in both prospects, providing outstanding leverage to exploration success.
“The strong support shown for Triangle’s placement is a testament to both the significant potential of our projects and the exciting period ahead for Triangle shareholders as we move towards drilling in L7 and EP 437 and finalising the sale of the Cliff Head asset.
“This equity raising will ensure Triangle is well funded for its share of drilling of its Perth Basin assets alongside JV Partners, Strike Energy Ltd and New Zealand Oil & Gas Ltd.
“We would like to thank the strong support shown in this placement from both existing shareholders and new investors alike and look forward to a very big 2024 for both Triangle Energy and the Perth Basin.”