Georgina Energy PLC (LSE:GEX) has raised £1 million in a share placing, priced at 5p, with the proceeds expected to support work programmes at its Hussar and Mt Winter projects in Australia.
“This fundraise strengthens our balance sheet and ensures we have the resources to progress key workstreams at Hussar and Mt Winter," said chief executive Anthony Hamilton.
"With significant preparatory work already underway, drilling approval for Hussar expected, and the ALRA agreement for Mt Winter advancing, we are well positioned to deliver value for our shareholders”.
Earlier today, in a separate announcement, Georgina Energy said it has entered into an agreement with Halo Capital Investments to potentially fund the Hussar and Mt Winter helium, hydrogen and natural gas projects in Australia. A memorandum of understanding (MOU) with Halo gives the investment firm a 12-month option to acquire rights to 100% of production from the projects.
Under the terms, Georgina’s subsidiary Westmarket Oil & Gas will be able to sell gas at the wellhead, while Halo will finance and manage processing facilities, storage and transport.
It allows for pre-pay financing and optional development funding, with Georgina’s sunk costs to be recovered.
"Georgina now has two off-take agreements in place, which provide a clear step towards commercialisation of the company's assets and further support of its wellhead sales strategy," Hamilton said in the earlier statement.
"With the imminent granting of the Hussar drilling permit and the completion of the 100% acquisition of the Mt Winter project, the company is in a strong position for future growth."
The company statement also confirmed that the Department of Mining, Petroleum and Exploration has now accepted all lodgement requirements for exploration permit EP513 at Hussar.
Final drilling approval is now awaited, after which site preparation works including airstrip repairs, road access and pad construction will commence.