Share Placement to Raise AU$6 Million
Brisbane, Sep 24, 2014 AEST (ABN Newswire) - Central Petroleum Ltd (
ASX:CTP) ("Central" or "Company") has agreed to place 20 million shares at $0.30 per share with institutional investors in Australia and Hong Kong raising $6 million. The $0.30 issue price represents a 1.7% discount to the 10-day VWAP.
The proceeds from the Placement in conjunction with existing cash reserves will ensure the Company has the capital required to fund its gas exploration programme and normal Company expenses.
"This capital raising enables the Company to be a potential participant in the eastern seaboard market, particularly should the Northern Territory become interconnected with that market" said Richard Cottee, Managing Director, Central Petroleum Limited.
DJ Carmichael Pty Ltd acted as the Lead Manager to the Placement.
Placement Details:
The Company will issue 20,000,000 fully paid ordinary shares at an issue price of A$0.30 per share. The Placement will be made available within the Company's available 15% placement capacity as defined under ASX Listing Rule 7.1.
Settlement of the Placement is expected to occur on Wednesday 1 October 2014, with the new shares expected to be allotted and to commence trading on ASX on Thursday 2 October 2014. The new shares will rank pari passu with existing shares.
About Central Petroleum Limited
Central Petroleum Limited (
ASX:CTP) is an established ASX-listed Australian oil and gas producer (ASX:CTP) with exploration and appraisal permits in the Northern Territory (NT). Central has grown to become the largest onshore gas operator in the NT, supplying residential and industrial customers in the NT and wider Australian east coast market.
Central is seeking to become a major domestic energy supplier, in addition to helium and naturally occurring hydrogen, with exploration, appraisal and development plans across 169,112 km2 of tenements the NT, including some of Australia's largest known onshore conventional gas prospects in the Amadeus Basin.
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