Private Placement and Share Purchase Plan to raise $11.5M
Brisbane, Sep 23, 2020 AEST (ABN Newswire) - State Gas Limited (
ASX:GAS) advises that it has received firm commitments to undertake a private placement to sophisticated investors raising $9.5M. In addition, the Company is undertaking a Share Purchase Plan (the Plan or SPP) targeting a further $2 million to allow qualifying shareholders the opportunity to participate alongside investors in the private placement.
The private placement and SPP follows the announcement yesterday by the Queensland Government of the appointment of State Gas as Preferred Tenderer for Authority to Prospect (ATP) for PLR2020-1-5, a large (1,414 km2) new area of gas acreage located 40 km south west of Rolleston in Central Queensland, contiguous with the Company's PL231 (Reid's Dome Gas Project).
Funds raised under the placement and SPP will be used to drill and production test at least three new gas wells (subject to approvals), and provide funding for field geology, seismic reprocessing and infrastructure studies for PLR2020-1-5 ("Rolleston-West") and PL231 ("Reids Dome"), along with corporate and fundraising costs.
Private Placement
State Gas is pleased to announce that it has received firm and binding commitments from sophisticated and strategic investors including Trevor St Baker (and associated entities) and other experienced energy and technology investors to raise $9.5M. The issue price of the new Shares is $0.55 per Share.
The Placement will result in the issue of 17,272,730 new fully paid ordinary shares in State Gas.
Settlement is scheduled for 29 September 2020, with allotment of new shares planned for 2 October 2020. The new shares are being issued without shareholder approval and using the Company's existing capacity under Listing Rule 7.1
Share Purchase Plan
The issue price under the SPP will be $0.55 per share, which represents a 4.1% discount to the Volume Weighted Average Market Price (VWAP) over the last 5 days on which sales of shares are recorded prior to the announcement of the SPP to ASX on 23 September 2020.
Under the SPP, eligible shareholders, being those with registered address in Australia or New Zealand on 22 September 2020 (Record Date) (Eligible Shareholders), will be given the opportunity to purchase up to $30,000 worth of new fully paid ordinary shares in the Company at a discount and without incurring brokerage or transaction costs. Eligible Shareholders will be able to participate in the SPP by subscribing for shares in multiples of $5,000, subject to a scale back at the Directors' discretion and the Listing Rules.
The SPP is targeting a maximum of $2,000,000. The SPP is not underwritten, however the Company reserves its right to accept additional funds received and place any shortfall under the SPP at a price not less than the issue price in accordance with its share issue capacity under the Listing Rules.
To view the indicative timetable, please visit:
https://abnnewswire.net/lnk/JA2BWZ71
About State Gas Limited
State Gas Limited (ASX:GAS) (OTCMKTS:STGSF) is a Queensland-based gas exploration and development company with highly prospective gas exploration assets located in the southern Bowen Basin. State Gas Limited's mission is to support east coast energy markets through the efficient identification and development of new high quality gas assets.
It will do this by applying an agile, sustainable but low-cost development approach and opportunistically expanding its portfolio in areas that are well located to gas pipeline infrastructure.
State Gas is 100%-owner of the contiguous Reid's Dome (PL-231) and Rolleston-West (ATP 2062) gas projects, both of which contain CSG and conventional gas. The Projects, together some 1,595km2 , are located south of Rolleston, approximately 50 and 30 kilometres respectively from the Queensland Gas Pipeline and interconnected east coast gas network. State Gas intends to accelerate commercialisation of these assets through the application of an innovative virtual pipeline ("VP") solution which will see the Company transport compressed gas by truck to existing pipeline infrastructure or to an end user.
State Gas also holds a 35% interest in ATP 2068 and ATP 2069 in joint venture with Santos QNT Pty Ltd (65%). These two new areas lie adjacent to or in the near vicinity of State Gas and Santos' existing interests in the region, providing for the potential of an alignment in ownership interests across the region over time and enabling synergies in operations and development.
State Gas is also participating in a carbon capture and sequestration initiative with minerals explorer Rockminsolutions Pty Ltd in respect of EPM 27596 which is located on the western border of ATP 2062. This project is investigating the potential of the unique basalts located in the Buckland Basaltic Sequence (located in EPM 27596) to provide a variety of in-situ and ex-situ carbon capture applications.
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