- BPH Energy (BPH) is set to raise more than $2.86 million through a placement and non-renounceable rights issue
- The completed placement will issue nearly 30 million fully paid ordinary shares to sophisticated and professional investors at 1.5 cents each
- Additionally, BPH hopes to raise over $2.4 million through a one for two rights issue to the same investors participating in the placement
- The money will go towards increasing its holding in Advent Energy from 23 to 36 per cent
- Additionally, the funds will be used to progress the Petroleum Exploration Permit 11 in New South Wales
- Company shares are up 11.8 per cent and trading for 1.9 cents
BPH Energy (BPH) has completed a placement to raise $449,813 ahead of a planned non-renounceable rights issue.
A total of 29,987,500 full paid ordinary shares will be issued to sophisticated and professional investors at 1.5 cents each. This comes with one free attaching option for every two shares subscribed for.
The company will undertake a non-renounceable rights issue of two for every five shares held by shareholders at 1.5 cents apiece once the shares under the placement have been issued,
BPH hopes the rights issue will raise up to $2,419,346 together with one free attaching option for every two shares subscribed for and issued.
The free attaching options under the placement will be granted subject to shareholder approval at an upcoming meeting. Investors who participate in the placement are eligible to take part in the rights issue.
A top-up facility will be available thus allowing eligible shareholders to apply for more shares over and above their entitlements.
“The company is pleased to receive funding from a range of investors including existing shareholders and others who participated in the Placement through Sixty-Two Capital,” Managing Director David Breeze said.
Use of funds
BPH will primarily use the money from the placement and rights issue to invest in Advent Energy and increase its shareholding from 23 per cent to 36 per cent.
Around $2 million of the money will then go towards well planning, engineering and environmental approvals for drilling at the Baleen target in the Petroleum Exploration Permit 11 (PEP11) offshore permit in New South Wales.
Through its wholly-owned subsidiary, Asset Energy, Advent holds an 85 per cent interest in the PEP11 permit and is the main operator. Fellow ASX-lister, Bounty Oil and Gas NL (BUY) owned the remaining 15 per cent.
As previously announced, the joint venture partners lodged an application the National Offshore Petroleum Titles Administrator (NOPTA) to change the current permit conditions so it can proceed with drilling.
NOPTA has confirmed the application is in its final decision phase and the final decision is expected shortly.
Company shares are up 11.8 per cent and trading for 1.9 cents each at 1:23 pm AEST.