Triangle Energy (Global) Ltd has raised A$3.5 million via an oversubscribed placement to fund production upgrades at the Cliff Head Oil Field and Arrowsmith Stabilisation Plant in the Perth Basin of Western Australia.
The energy stock tapped sophisticated and professional investors to raise the funds and plans to issue around 269 million new shares at A$0.013 each.
Subject to shareholder approval, Triangle will also issue one unlisted option for every two placement shares subscribed for, exercisable at A$0.025 with a three-year expiry.
Together with its cash reserves and short term funding, TEG will use the placement proceeds to:
- Workover the Cliff Head 10 well and secure long-lead items, where replacing the downhole electrical pump is expected to increase production by 130 barrels of oil per day;
- Refurbish oil storage tanks at the Arrowsmith Stabilisation Plant and cover other capital costs that will help finalise the Perth Basin Oil Export Route;
- Pay 3D seismic costs on the L7 and EP 473 permits prior to receiving funding; and
- Cover general working capital purposes.
Investors “appreciate and approve” turnaround
Speaking to the fundraise, Triangle Energy managing director Conrad Todd said the company was pleased to see the market support for its oversubscribed placement.
“This capital raising will allow Triangle to progress its oil export route and through the CH10 workover to export more oil through it,” he explained.
“The 3D seismic acquisition is underway, and this is expected to enhance the exciting exploration potential of the L7 and EP 437 permits.
“The strong support for this placement from existing shareholders and new investors demonstrates that investors appreciate and approve of the turnaround in the company that commenced earlier this year.”
Placement details
Showing their faith in Triangle’s strategy, the company’s directors have put their hands up for 8.8 million placement shares (and 4.4 million options) to raise A$115,000 under the placement.
TEG will seek shareholder approval for the subscription at a general meeting, slated for mid next-month.
The placement’s A$0.013 issue price represents a 13.3% discount to both the last closing price of TEG shares and the five-day volume-weighted average price.