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- Leigh Creek Energy is desperate to kick off its self-named project in South Australia, but the share market is putting the pressure on
- After releasing an announcement today on raising $3.2 million to grease the project along, the company’s shares fell by 9.26 per cent
- The project in question is claimed to be the largest uncontracted east coast Aussie gas reserve, sitting on 153 petajoules of gas resources over its coverage of 93 square kilometres
- The company has no clear timeframe in place for development of the project, but remains poised in talks with the Department Energy and Mining for a commercial pathway
Leigh Creek Energy announced today it had raised $3.2 million for a capital raising, but its share price in the ASX fell 9.26 per cent over the course of the day.
The company had raised the money to fund development of its name-sake project, located 550 kilometres north of Adelaide in South Australia.
However, the company’s shares took a big hit when it released the news after market open.
Leigh Creek started this morning at 26.5 cents a piece. After a rocky day and a brief spike, its shares now sit at 24.5 cents each.
To raise the funds, the company placed 14.32 million shares at $0.225 a piece.
“This capital raising continues to demonstrate strong support for the Company and its plans to commercialise the large gas reserve at the Leigh Creek Energy Project,” company Managing Director Phil Staveley said.
The self-named project is claimed to be east coast Australia’s largest uncontracted available gas reserve.
It is estimated to hold 1153 petajoules of gas resources over its coverage of 93 square kilometres.
Leigh Creek management stated today’s capital raising to be in line for the funding strategy for rapidly developing the project – but there’s no end in sight.
“We have been working closely with [the Department Energy and Mining] to agree on a commercial pathway to approvals and believe we will be in a position to notify the market in the very near future,” Phil concluded.
In positive news for the company, however, it claims to have reduced its monthly operating costs over the past year in a quarterly report that highlighted a $3.1 million cash balance.
Leigh Creek Energy’s market cap is presently valued for $147.9 million.
