- Bounty Oil & Gas (BUY) has raised $1.43 million to fund oil development activities at its projects in Queensland’s Naccowlah Block
- Under the terms of the placement, the company issued 143 million fully paid ordinary shares at a price of one cent each
- The proceeds will be used to progress next year’s program of oil developments at a number of different projects
- The company also plans to source additional Australian offshore gas condensate projects , which will be the focus of the next few months
- Shares in Bounty Oil & Gas remain under suspension and last traded at 2.7 cents each on September 21
Bounty Oil & Gas (BUY) has raised $1.43 million to fund oil development activities at its projects in Queensland’s Naccowlah Block.
Under the terms of the placement, which was announced yesterday, the Sydney-based company issued 143 million fully paid ordinary shares to existing shareholders and a number of sophisticated investors at a price of one cent each.
These shares will rank equally with those currently on issue and, once allotted, will result in a total outstanding capital of 1,096,400,982 fully paid ordinary shares.
Philip Kelso, CEO of Bounty Oil & Gas, commented on the completion of the financing.
“Bounty has received strong support through this placement to raise $1.43 million for its 2021 oil development projects at Naccowlah Block, Queensland where it achieved $2.9 million oil sales in the year ended and for its other projects,” he said.
“In addition to its PEP 11 Sydney Basin interest Bounty is seeking further offshore gas condensate projects within Australia aiming to “scale up” in 2021. These projects will be pursued aggressively in coming months,” he added.
Bounty Oil & Gas purchased a two per cent stake in the Naccowlah Block in 2011, which covers 2,556 square kilometres within the Cooper-Eromanga Basin and is operated by Adelaide-based energy giant Santos.
While there is no shortage of targets at the Naccowlah Block, the company’s Quarterly Report released on July 31 noted that appraisal drilling under the development plan would likely be delayed due to this year’s decline in oil prices.
A number of wells drilled in the last financial year would also need further evaluation before they are brought online.
Shares in Bounty Oil & Gas remain under suspension, and last traded at 2.7 cents each on September 21.