- Triangle Energy (TEG) is raising up to $10 million through a placement to advance its Perth Basin expansion strategy
- Over 454.5 million shares are being issued to investors through stock broker CPS Capital Group at 2.2 cents per share
- The placement comes with one free attaching option for every two shares subscribed for and are exercisable at 3.5 cents and expire after two years
- The money is primarily being allocated to current and future exploration work at the Cliff Head Oil Field
- Company shares were down 10.7 per cent to trade at 2.5 cents at 10:44 am AEST
Triangle Energy (TEG) has received firm commitments to raise up to $10 million to advance its Perth Basin expansion strategy.
The oil and gas company will issue up to 454,545,455 fully paid ordinary shares at 2.2 cents per share to CPS Capital Group's sophisticated and professional investor clients.
The placement comes with one free attaching option for every two shares subscribed for and issued. The options are exercisable at 3.5 cents each and expire after two years from the date of listing.
Triangle Energy will conduct the placement in two tranches with the first to issue 80,649,566 shares which represent about 11.5 per cent of TEG's share capital. The remaining shares and the free-attaching options will occur in tranche two which is subject to shareholder approval.
Company directors have committed to participate in the second tranche by subscribing for around $250,000 worth of shares.
"Triangle has exposure to production and exploration for conventional oil in one of Australia’s most under explored hydrocarbon basins, the east coast gas market, renewables and critical processing infrastructure," Managing Director Rob Towner said.
The funds will be used to conduct workovers and drilling at the Cliff Head Oil Field, to progress seismic planning and exploration evaluation at multiple permits and for working capital.
Additionally, TEG will undertake a feasibility study for a mid-west oil refinery and to establish a future fund for the Cliff Head Oil Field. This will provide a cash reserve for any major projects at the oil field without facing any delays.
Company shares were down 10.7 per cent to trade at 2.5 cents at 10:44 am AEST.