Capital Raising for Growth
Sydney, July 18, 2012 AEST (ABN Newswire) - Buccaneer Energy Limited (
ASX:BCC) is pleased to advise that it has executed binding agreements for the issue of 292,682,927 shares in the Company at an issue price of $0.041 to raise a total of $12.0 million ("Placement"). In addition, the Company will also implement a Share Purchase Plan ("SPP") to eligible shareholders capped at $1,500,000 at an issue price of $0.041.
The Placement will be completed in two tranches with Tranche 1 of 141,798,925 shares to raise $5,813,756 being undertaken immediately under the Company's 15% capacity under ASX Listing Rule 7.1. Tranche 2 of the Placement of 150,884,002 shares to raise $6,186,244 will be completed subject to shareholder approval at a general meeting that is expected to be held in late August 2012. The Company anticipates sending SPP documentation to shareholders shortly and the issue of shares under the SPP is subject to receiving all necessary approvals required under the Listing Rules.
Bell Potter Securities is acting as Lead Manager to the Placement.
The Company is also pleased to advise that Zenith Securities Pte Ltd, Singapore ("Zenith") and Augsburg Investments Ltd, Hong Kong ("Augsburg") have each subscribed to 48,780,488 shares in Tranche 1 of the Placement with each corresponding to a 4.3% interest in the Company.
The Company views the issue of shares to Zenith and Augsburg as the start of a long term strategic relationship and as such it intends offering Zenith and Augsburg jointly one non-executive board seat to cement this new partnership.
The remainder of the Placement was supported by existing institutional shareholders and a range of new international and domestic institutions and sophisticated investors and was heavily oversubscribed
The proceeds of the Placement along with the Company's existing project finance facility will be used for the following purposes:
- Drilling the next well at the Company's Kenai Loop project;
- Support the Company's offshore Cook Inlet exploration program;
- Completion of the acquisition of a 25.0% working interest in the Cosmopolitan project;
- Additional equity contributions to the Company's 50% owned subsidiary Kenai Offshore Ventures, LLC that will be used to finalise the modifications and upgrades to the Endeavour jack-up rig; and
- Costs of the issue and general working capital.
Buccaneer Director Dean Gallegos said:
"The Company is about to embark on a significant period of activity and growth in its Alaskan operations and to do this effectively will require the Company forming solid business relationships not only within Alaska but also globally.
The initial effort will be focussed on maximizing production delivery of the Kenai Loop onshore gas field. To optimize its capital expenditure program, offshore exploration will be phased to follow the development of its onshore Kenai Loop project.
To reduce operational expenditure while the Company focuses on its Kenai Loop development, the Company will seek to contract out the recently acquired Endeavour Jack Up rig to third party operators.
The Company's ability to complete a large equity capital raising relative to its size is confirmation of the strong underlying strength of its Alaskan projects and business plan. We look forward in working with Zenith and Augsburg to maximise and monetise the value of the Company's asset base for the benefit of all shareholders."
Contact
Buccaneer Energy Limited
T: +61-2-9233-2520
F: +61-2-9233-2530
WWW: www.buccenergy.com
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