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- Norwest Energy (NWE) set to raise $18 million mainly for further appraisal and exploration programs at its Lockyer Deep gas project onshore in Western Australia
- The company has received commitments for about $15 million of the capital raise via a share placement, primarily from institutional investors and major shareholders, who have signed up for 465.5 million new Norwest shares at an issue price of 3.3 cents each
- The placement is expected to settle on Wednesday, April 13 and the issue price represents a 13.2 per cent discount to the stock’s last traded price on Friday, April 1 of 3.8 cents
- Norwest has also launched a $3 million share purchase plan (SPP), allowing eligible shareholders to subscribe for up to $30,000 worth of new shares at the same issue price as the placement
- NWE shares down 7.89 per cent to 3.5 cents
Norwest Energy (NWE) is looking to raise $18 million mainly for further appraisal and exploration programs at its Lockyer Deep gas project onshore in Western Australia.
The company said it had received commitments for about $15 million of the capital raise via a share placement, primarily from institutional investors and major shareholders, who have signed up for 465.5 million new Norwest shares at an issue price of 3.3 cents each.
The placement is expected to settle on Wednesday, April 13 and the issue price represents a 13.2 per cent discount to the stock’s last traded price on Friday, April 1 of 3.8 cents.
Norwest has also launched a $3 million share purchase plan (SPP), allowing eligible shareholders to subscribe for up to $30,000 worth of new shares at the same issue price as the placement.
The tentative closing date for the SPP is April 22, depending on the total applications received.
Funds from the capital raises and the company’s cash reserves will go towards completion of the Lockyer Deep-1 well as a future gas and condensate production well, seismic surveys aimed at optimising appraisal and development of the Lockyer Deep gas field and maturing exploration leads for future drilling, and appraisal drilling of the gas field.
“We regard this level of interest as testament to the significance of the Lockyer Deep-1 discovery,” Norwest Managing Director Iain Smith said.
“With a pro forma cash position following the capital raising of over $20 million (pre SPP), the company is in an extremely strong position to progress Lockyer Deep towards development and to maximise shareholder value through exploration of the additional gas and oil potential identified within the company’s permits.”
NWE shares were down 7.89 per cent to 3.5 cents at 11:39 am AEST.
