- Byron Energy’s (BYE) share purchase plan (SPP) has closed oversubscribed, with applications received totalling $17.3 million
- As a result, applications will be scaled back by 20 per cent, for a total raise of $13.8 million
- 106,300,000 fully paid shares will be issued on June 19, 2020, at 13 cents per share
- Consequently, the money from SPP and recent placement will be used to accelerate one of their projects in the Gulf of Mexico
- Byron’s share price is trading at 15.5 cents per share, an increase of 10.7 per cent at market close
Byron (BYE) has raised a total of $27.6 million through a successful share purchase plan (SPP) and previous placement.
In an announcement today, the oil and gas company revealed their SPP (announced on May 19, 2020) received $17.3 million worth of applications from 3414 eligible shareholders.
However, the company will scale back all of the applications by 20 per cent to walk away with $13.8 million.
The successful applicant’s SPP shares will be issued on June 19, 2020, at a price of 13 cents per share.
Refunds, where applications were scaled back, will be processed on June 22, 2020.
An additional $16 million was raised by Byron in a placement, announced May 19 2020.
The company has also flagged an additional $2.2 million conditional placement comprising subscriptions from company directors or their associates, though the placement will be subject to shareholders approval.
“We are overwhelmed and very thankful for the confidence and support our shareholders have shown during our recent capital raising efforts,” Byron’s Chief Executive Officer Maynard Smith said.
“In spite of the difficult times we live in, I think the timing for this accelerated program is ideal and it will substantially increase our production profile going into 2021 as the world economies and demand for oil return to a more normal environment,” he added.
The capital raised will be spent accelerating the development of the drill of SM58 G2 well, located in the Gulf of Mexico, south of Louisiana.
Byron’s share price is trading at 15.5 cents per share, an increase of 10.7 per cent at market close.