- Perth-based oil and gas company, Brookside Energy (BRK) is aiming to raise over $1.5 million for its Orion Project joint venture
- Brookside will offer 251 million shares to eligible shareholders under a non-renounceable pro-rata entitlement offer
- The entitlement offer includes one new share for every four shares held at an issue price of 0.5 cents per share to raise over $1.2 million
- Additionally, the company is aiming to raise a further $300,000 through new options at 1.1 cents per share
- In the second quarter of 2020, Brookside spent $271,000 on operating activities and had $412,000 in its pocket at the end of the period
- Oil and gas net volumes were down approximately six per cent to 2182 barrels of oil equivalent, compared to last quarter
- However, Brookside has seen some improvement in the oil and gas pricing toward the end of the quarter
- On the market today, Brookside is in the grey and trading for 0.5 cents per share
Perth-based oil and gas company, Brookside Energy (BRK) is aiming to raise over $1.5 million for its Orion Project joint venture.
Capital raise
The capital raise will be completed in two parts, with a non-renounceable entitlement offer and an offer of new options.
Entitlement offer
Brookside will offer over 251 million shares to eligible shareholders for a non-renounceable pro-rata entitlement offer.
The raise will offer one new share for every four shares held at an issue price of 0.5 cents per share, together with one free attaching new option (at 1.1 cents each) for every new share subscribed for.
The company is aiming to raise approximately $1,255,625 via the raise.
New options
Additionally, Brookside is aiming to raise a further $300,000 through the issue of new options at 1.1 cents per share. However, this offer still needs shareholder approval.
CPS Capital has been appointed as the corporate advisor, broker and lead manager of the offers.
Where will the funds go?
The company will use the funds to strengthen its balance sheet as it ramps up activity in the Orion Project Joint Venture and to broaden Brookside’s investor reach.
In June, Brookside and Stonehorse Energy (SHE) formed a joint venture called ‘Orion Project’, to purchase oil and gas plays in the Anadarko Basin, Oklahoma.
The joint venture is initially focusing on an 1100 square kilometre area in the basin.
“We are very much looking forward to partnering with CPS Capital as we continue to grow our business in the U.S. and take advantage of the opportunities that are coming from this period in the cycle for oil and gas companies,” Managing Director David Prentice said.
“There are some early signs of stability in the oil price and given the very strong economics of our SWISH AOI acreage we are monitoring this closely and are ready to respond quickly with our development plans for our Anadarko Basin acreage,” he added.
Quarterly report
The company has also released its 2020 second-quarter report. Over the period, Brookside spent $271,000 on operating activities and had $412,000 in its pocket at the end of the period.
In addition, oil and gas net volumes were down approximately six per cent to 2182 barrel of oil equivalent when compared to last quarter. Net revenue was also hit by a drop in realised oil and gas prices — down 52 per cent quarter on quarter.
“The company reacted quickly to the changed market conditions, reduced costs and restructured and then pivoted to an asset protection and producing property acquisition strategy,” Brookside told the market today.
“The company has noted some improvement in the pricing toward the end of the quarter,” the company reassured its shareholders.
On the market today, Brookside is in the grey and trading for 0.5 cents per share at 12:25 pm AEST.