Dart Energy (ASX:DTE) is raising US$20.7mln to fund development of its unconventional gas assets here in the UK.
The cash call is being done in two tranches with US$11.9mln coming from placement of stock with institutional and sophisticated investors.
A total of US$8.8mln-worth of new equity will be issued to existing shareholders in what’s known as a non-renounceable entitlement offer. It will be allocated on a one-for-nine basis at 9 cents a share, a 10% discount to the current share price.
Dart’s two major shareholders will subscribe to their full entitlement of new shares.
With a significantly strengthened balance sheet, the company said it plans to embark on an “active” drilling programme in the UK, where it has coal bed methane assets.
It added it is in an “ongoing process” to find a farm-in partner for its shale blocks.